Self-Managing your Rental Property

If you make the decision to manage your property alone, the following pieces of advice should be seriously considered:

• It can be wise to avoid, or at least be very wary of, letting your property to people that you know. This can lead to an awkward tenant/landlord relationship that tends not to be as harmonious as you may have imagined.

• Another general piece of advice is to keep on top of your property’s repairs, however costly, as problems with properties tend only to get worse the longer they are left, and more expensive to fix.

• Deciding the price of your rent is an extremely important decision to get right. Too high and you will price yourself out of the market, but too low and you will be falling short of the market value. Plenty of research is necessary to avoid bad pricing, look at other properties in your area, the national and local press, and letting agent’s websites to help you come up with a realistic but profitable figure.

• It is vital that you make sure that you, and your client, are legally protected by way of an Assured Shorthold Tenancy Agreement. These can be drawn up by your solicitor or are available to buy as standard, ready made contracts.

• An impartial expert should be hired to draw up a legally binding inventory for you and your tenant with regard to the furnishings. As the landlord you will then have the right to hold back the deposit, in part, or in full, if anything is damaged.

• It is very helpful to build up a list of personally recommended contacts so that, in the event of something going wrong, you do not have to sift through the yellow pages trying to find a plumber on short notice.

• Minimise the hassle for you, and your tenant, by insisting that they pay by standing order. These are easy to set up and are great stress relievers.

• Keep your tenant’s contact details in your phone, everything from their e-mail address to their phone number at work.

• Your tenants should be able to contact you at all times, even when you are out of the country. Make sure that there is a list of contact numbers for you, but also for all of the property’s service providers and the council, this will minimise the need for your tenants to contact you.

• It is very wise to leave all the instructions for operating all of your property’s appliances including the boiler and electric shower, perhaps allocate a drawer to keep this type of documentation, along with any relevant guarantees. You should also ensure that your boiler is serviced regularly.

• With regard to keys it is advisable to keep at least two spare sets, one of which being the master set, as keys cut from copies are never as good as the original. Spare keys can come in handy when tenants mislay theirs or lock themselves out, but they can also be lent to contractors when they are working on your property to ensure the smooth running of the job.

• Remember to arrange regular inspections of your property with your tenant (your tenant can refuse you entry to the property unless you make a prior verbal arrangement) and address small problems before they escalate and become irreparable.

This advice does of course apply to those brave enough to manage more than one property at a time. For those out there who are looking to manage multiple properties, the biggest tip is to adopt a uniform approach, whereby, for example, all rent for tenants in all properties is paid on the same day, to help you keep things organised and under control.

Managing Agents or Self Management?

To help make your decision easier we have compiled the following list of the pros and cons of using a management service:

The pros of a Management service are that an agent will…

• Have experience in reaching the target audience.
• Have a ready-made database of potential clients.
• Have advertising knowledge and links in specialist publications.
• Undertake all viewing for you.
• Verify the references of potential tenants, confirm details, and carry out credit checks.
• Provide a legally binding, signed contract.
• Often ensure that your appliances are checked at regular intervals.
• Arrange for minor repairs and decoration at your request.
• Act as a mediator between the tenant and landlord.
• Collect rent and take action in the event of non-payment.
• Provide support and advice if a dispute arises.
• Be open to negotiation for reduced fees if asked to manage multiple properties.
• Provide helpful monthly statements making cash flow calculations easier,
• Be able to offer specialist insurance cover which provide extra protection to landlords in the event of disputes and repairs.

The cons of Management service are that an agent will…

• Cost you money for a service that is, perhaps, not entirely necessary.
• Sometimes delay the payment of rental income to the landlord, which can inhibit cash flow and become a source of frustration.
• Sometimes struggle to deal with emergency problems that are out-of-hours.
• Possibly commit the landlord to large repair bills without consultation or prior warning.
• Sometimes attempt to spring ‘extra’ fees on you that are not part of the basic payment, be sure to check what is and what is not included in your fee.
• Not always be all that you had expected them to be, just because you are paying for a service it does not necessarily mean that you will be 100% happy with it!

Whichever route you decide to take WelcomeHome wishes you the best of luck with your venture!