Hiring a property management company: 11 main benefits
UK rental prices rose by 3.2% in the 12 months up to July 2022, reports the Office for National Statistics.
If you exclude London, this figure rises to 3.7%, one of the steepest rises since 2008.
Property management companies can help you make the most of your investment. Owning a rental property in London, for example, is a lucrative business, but it’s a stressful one too.
You have so many things to manage like finding new tenants, maintenance, and finance. So how do you find time for other areas of your life?
Imagine earning from your property or portfolio with a fraction of the effort. Hiring a property management company is the solution you need.
Table of Contents
- Keep Your Property Up to Scratch
- Find Qualified Tenants Faster
- Stay Competitive in Your Local Rental Market
- Stay Compliant With Fire, Gas and Electric Regulations
- Build Your Real Estate Portfolio
- Make the Most of Short-term Lets
- Gain Greater Data Insights
- Less Legal Headaches
- Betting Financial Reporting
- More Efficient Communication
- Collect Your Rent on Time
A property management company saves you time, money and stress. It will be your one-stop for everything from marketing to maintenance to finance and regulations. Instead of using several companies, you just have to deal with one.
This actually works out cheaper in most cases. Property managers have a network of contractors and streamlined processes at their disposal.
You will find tenants faster with less downtime. You will have lower vacancy rates and longer-term rent agreements.
Then there’s the time factor. If the rental market is the second source of income, you have to manage your main job too. If you have family and social life too, you must be stretched pretty thin! Your hired property management team can help you find more time and the extra money to enjoy it.
Let’s take a look at 11 benefits of hiring a property management company, shall we?
1. Keep Your Property Up to Scratch
Maintainance is the bane of most landlords’ routines. You have to keep things up to date to comply with regulations and keep tenants happy. Small issues left alone can become huge in no time.
Things like faulty appliances, roof leaks and floor repairs take a chunk out of your revenue. Spotting them fast, and fixing them well, saves you money down the line.
Property management companies schedule regular inspections. They have contractors on standby to fix issues fast.
Your property manager can advise you on the best renovations for your property. Then they can schedule the work with licensed, vetted contractors.
The right renovations raise the value of your property, but the wrong ones are a waste of money. Wise choices include kitchens, loft conversions, garden rooms, open-plan living and downstairs toilets.
2. Find Qualified Tenants Faster
Property managers are expert marketers and networkers. They will find tenants for you in a much shorter time than you could alone.
Then there’s the screening process. Streamlined and effective, this will include everything you need to know:
- Credit checks
- Employment and income
- Landlord references
- Eviction history
- Criminal convictions.
You will get tenants who can pay on time, respect your property and stay longer. Property managers know how to assess and interview tenants to find the key details.
Doing this yourself would be time-consuming, stressful and legally tedious.
3. Stay Competitive in Your Local Rental Market
Local market research will reveal the average rent price in your area. You can find out what rent to set to compete with the other properties.
This can be a balancing act; you want to make a profit, but also attract tenants. Property management companies know how to set a competitive rent price. Forget all that trial-and-error stuff.
You will also get an accurate appraisal of your property. You will know its true value and how to market it to your advantage. Qualified valuers know every detail that factors into your property’s value.
Time is also a vital part of property marketing. Certain seasons attract more new tenants, and spikes and dips in the market spur business too. Stay in the loop to stay ahead of your competition.
4. Stay Compliant With Fire, Gas and Electric Regulations
Building safety regulations in UK can be hard to keep tabs on. Property managers do this for a living, and they know of any changes that could affect you.
You need to think about your gas safety compliance. Booking annual checks and Gas Safe engineers takes time. You also need to give safety check documents to your tenants when they move in or after the latest check.
Then there’s electrical systems safety. You need to book inspections and maintenance. Any appliances you supply need to be deemed safe too.
Smoke alarms on each floor and carbon monoxide detectors take time. Escape routes must be accessible, and all your furniture needs to be fire-safe.
UK property management companies know the specifics of compliance. They train and pass tests to stay in the industry. You can leave it in their hands and stay up to date with any legislative changes.
5. Build Your Real Estate Portfolio
If you own multiple properties, you know how hard it is to maintain and market them. Even if you find it a breeze, a property manager can take your business to the next level.
New investment opportunities will be easier to find. Your property manager can check the market for you at your request. Their network will find you the best deals, and they will negotiate on your behalf.
You can rent out more properties with minimal extra effort. If you need updates about any of your rentals, contact your property manager.
The real estate market has its ups and downs, but it is more stable than other options like stocks. You will have access to the latest industry news too.
6. Make the Most of Short-term Lets
Rentals that cater for tourists, short stays and business travel are in high demand. In some areas, summer skyrockets rent prices. Bustling cities, like London, Liverpool and Edinburgh are in constant demand.
Renting short-term can be risky if you do it alone. Some rental platforms offer insurance to landlords, but damage is always a risk. Yes, you gained some cash for a short time, but repair bills could take it away.
Certain types of property management companies handle your online profile too. They know how to boost your reviews and help you attract new business with social media marketing.
Check-in and check-out will be swift. After guests leave, your property manager will book fast cleaning and inspection. Your next guest could arrive within hours; think about that for a second.
Of all the types of property management, short-term lets can be the trickiest to get right. They can also be a rapid source of revenue.
7. Gain Greater Data Insights
UK property marketing companies collect, back up and analyze real estate data. Delve into market projections, geographic information systems (GIS) and sales performance.
You can also use predictioins about a property’s future value to inform your investments. Even if a property looks ordinary now, this data could help you pick a future winner.
GIS uses location data to assess, store and display geographical information. It lets you factor in traffic, flooding, topography, and street layout. This can get technical, but in the right hands, it is a key tool.
Tech-focused property management types use our connected world to improve efficiency. Collect usage data from home appliances, heating systems and lighting. Boost efficiency and spot electrical repairs early.
8. Less Legal Headaches
You have to deal with a whole stack of legislation as a landlord. Licenses, rent agreements, deposit protection and legal notice periods all crop up.
Since the Housing Act of 2004, rules change fast, and you need to stay aware of them. Unless you’re an avid reader, you will tire of these walls of text. In fact, even if you are an avid reader, it is pretty dry stuff.
Drawing up a tenancy agreement fair to both parties is tricky. Factor in things like inventory, liabilities and deposit terms. You see why headache is in the subheading above?
Then there’s the worst scenario: eviction. The eviction process takes time and legal knowledge. You need to think of a tenant’s rights at each hurdle, even if they are at the end of their notice period.
Your property management company can handle evictions for you. They can have a new tenant lined up for when your property is vacant. They can draw up all the paperwork, collect signatures and you’re back in business.
9. Betting Financial Reporting
Not all of us were born with a head for numbers. Independent bookkeeping is a complex business. Those with training and certification have their stature for a reason.
With a property manager, you get detailed financial reports about your property. Even if you live away from its location, you get everything you need to stay updated. Focus on the bottom line and take note of the rest.
Expenses, income and variance analysis can help you refine your budget. Your property manager will do this for you, but if you’re curious, the numbers are there for your perusal.
Taxes will be easier. All your expenses will be itemised and accounted for by a professional bookkeeper. When it’s time for self-assessment, it’s easy to split payables and allowances. Financial clarity saves you money and time.
10. More Efficient Communication
Have you ever had a late night phone call from a tenant whose electricity has gone off? Or maybe a water leak you needed to send someone out to?
These things are, of course, your responsibility as a landlord. But they are nonetheless inconvenient and can be stressful to fix.
When your hire a property manager, you get a point of contact for your tenants. The best property management companies have 24/7 emergency lines. They have contractors ready to respond at all hours.
Leaks, floods and outages strike at the worst times. With property management, your tenants are in safe hands, and you have the peace of mind to relax.
Conversations about late rent, damage and complaints can be uncomfortable. Some tenants respond in different ways. Property managers know how to negotiate these issues professionally.
You also get the benefit of all your property calls going to one place. You can forget your list of every company in the housing industry. Dial your property manager and get things sorted fast.
11. Collect Your Rent on Time
You’ve met your new tenant. You’ve both signed the paperwork, and everything looks good. You wait for the first month’s rent and … nothing.
Property managers ensure your rent is in your account on time every month. The best companies offer guaranteed rent programs. This lets you manage your finances better and keeps you on track.
Property managers also know the legal steps to take in the event of delayed rent. This can be hard to navigate on your own. Late payment fees and notice periods depend on the owed rent amount and other details.
Rent disputes are best handled by professionals in most cases. Property managers know how to find solutions and get your business moving again.
Leading Property Managers Are Ready to Help
Hiring a property management copmany will help you improve and expand your rental business. You will have professionals there to handle the details.
GuestReady is a team of tech-savvy property managers who specialise in short and medium lets. We provide everything your guests need at standards that make hotels jealous.
Our combined 50 years of experience in hospitality, tech and finance taught us our trade. Our love of travel put us on the other side of the check-in desk, and we know what your guests need.
We are your full-service partner for UK lets. Get in touch today.