Property management explained – Definition and types
Did you know that 45% of landlords manage their properties? This is surprising, to say the least. Nowadays, there are several types of property management services available in the UK. However, many landlords fail to recognise how helpful these services can be.
Are you a UK investor or property owner? Are you considering taking advantage of professional property management services? If so, congratulations on making an excellent decision. Decisions like these can be lucrative and rewarding.
This is especially true as more and more people purchase property to rent out on platforms like Airbnb.
However, not all property management services are the same. That’s why we’re breaking down all you need to know about property management in the UK.
By the end of this guide, you’ll feel confident when it comes time to make your call. So grab a cup of tea and relax — scroll down for everything you need to know about managing properties and UK real estate.
Table of contents
- What is Property Management?
- Types of Property Management
- What Does a Property Management Company Do?
- Property Management Companies in the UK
- Who Regulates Property Management Companies in the UK?
- Do I Need a Property Management Company?
- Get Help With GuestReadyGet help with GuestReady
1. What is Property Management?
In general, property management involves overseeing and maintaining property and real estate assets. It’s a growing field that is becoming more popular and prominent.
Mostly, this increase in popularity is due to an increase in interest in short-term rental platforms such as Airbnb. This also includes Airbnb alternatives such as Vrbo and Sonder.
What does a property manager do? The simple answer is that they’re in charge of, well, managing properties. This means they’re responsible for tasks such as:
- Collecting rent
- Handling tenant relations
- Performing maintenance and repairs
- Filing taxes
- Inspecting properties regularly
- Ensuring property compliance with applicable laws and regulations
As property values continue to rise in many markets, the skills of a property manager can be invaluable. In the case of holiday rentals, they can make or break your business.
2. Types of Property Management
Didn’t know there were different types of property management? Well, there are. And as a landlord or real estate investor, this knowledge will help you decide which type of managing style best fits your needs. It’ll also help you plan better goals for your investment properties.
All in all, having an understanding of different types of property management can save you time, energy, and money. Here are the three main types of property management in the UK.
Residential property management is the overseeing of residential properties, such as apartments and condominiums. These services focus on managing the everyday operations of residential dwellings, including:
- Collecting rent
- Handling tenant requests and complaints
- Interviewing potential tenants
- Arranging maintenance when needed
Mostly, residential property management revolves around keeping up appearances. This means that a property manager will focus on providing things like repairs and tenant support.
All in all, residential property managers should be very knowledgeable in tenant relations. It’s a plus if they understand residential rights.
Commercial property management refers to overseeing commercial real estate properties such as:
This type of property management is unique. After all, commercial tenants have different needs than residential ones. Property management companies have to be ready to handle those needs.
For example, commercial tenants might require commercial-grade maintenance. Or, they might need specialised janitorial services. In addition, commercial tenants require more frequent attention. This is due to their varied occupations and longer leases.
By comparison, managing residential properties requires more traditional property management knowledge and skills such as rent collection and tenant communication.
Finally, we have holiday property management. This type of service is ideal for those who’ve invested in UK real estate that they plan to rent on holiday rental platforms.
Airbnb property management is a subset of holidays property management. It focuses on owners who want to make their holiday homes available through the Airbnb platform.
In most cases, this involves tasks such as:
- Finding suitable tenants
- Marketing holiday homes to potential guests
- Planning promotions and discounts
- Staying in contact with guests during their stays
- Maintaining the holiday rental
In addition to these services, Airbnb property managers provide support for guests during their stay. They can respond to concerns or questions regarding their accommodations or local attractions. This leaves you with more time to invest in other jobs or activities.
3. What Does a Property Management Company Do?
A property management company provides important services for property owners who are looking to outsource certain tasks. They offer various services such as cleaning, repairs and rent collection.
They also know what needs to happen to keep your property running smoothly so that it continues to attract renters. They do this through their ability to:
- Understand the local regulations in the area
- Know how to advertise and market rental properties
- Can handle maintenance requests and respond promptly
With a property management company, you’ll get peace of mind that your property is being taken care of. All you have to do is sit back and enjoy the increased income and guest satisfaction.
4. Property Management Companies in the UK
So, how many property management companies are there in the UK?
While it’s difficult to calculate exact figures, property management companies throughout the United Kingdom appear to be on the rise. Current statistics show that there are at least 20,548 property management companies active in the UK.
These property professionals help property owners take care of anything related to the property, from everyday maintenance to guest relations.
Indeed, with an increasing demand for holiday rentals in many cities across the UK, property management companies play an essential role in ensuring that properties stay well-maintained and fit for purpose.
5. Who Regulates Property Management Companies in the UK?
In the United Kingdom, two main organisations regulate property management companies. First, you have the Royal Institution of Chartered Surveyors (RICS). The RCIS has a code of conduct for UK property managers and landlords. It specifies best practices and aims to improve the standards of the business.
You also have the Association of Residential Letting Agents (ARLA). Both organisations ensure property management companies comply with legislation and codes of practice.
Ensuring property owners, tenants and landlords get the best possible service is paramount to these organisations. To become authorised members, property management companies must meet a high standard of professional conduct and customer service.
6. Do I Need a Property Management Company?
If you think that all of this sounds pretty nice then it’s time to consider your options. However, before you go and contact the first property management company you find online, there are a few things you’ll need to consider. For example, is property management even right for you?
While we believe it’s beneficial for most, we know we’re slightly biased. So, consider the following benefits. If you could benefit from one of these perks then it’s worth working with a property management company in the UK.
A. Save Time
Are you looking to save some time when it comes to renting out your property on Airbnb? If so, a property management company could be the way to go. They can handle everything from listing your property and managing the calendar.
Likewise, you won’t have to be constantly on call for inquiries or fielding bookings. Instead, your property management team will manage all communication. They’ll also usually take care of any additional services your guests need.
B. Maintenance Solutions
When renting out your property on Airbnb, maintenance is one of the biggest issues.
A property management company can help you with maintenance-related tasks, though. They’ll handle repairs and respond to maintenance requests from guests. They’ll also provide preventive maintenance services such as regular inspections and minor upkeep activities like mowing the lawn or changing lightbulbs.
Having a property management company also means you’ll have someone you can trust to take care of maintenance issues. No longer do you have to look for a plumber online and hope they’re great. Instead, you’ll work with a trusted team of specialists. This allows you to offer your guests get the best experience possible.
C. Guest Communication
So, you’ve purchased a few real estate properties? Now, you want to rent them out as holiday rentals on Airbnb. While this might sound like a great passive income idea, it can quickly become tedious.
You have to respond to booking requests and communicate with guests during their stay. Now, your passive income idea turns into a time-consuming one.
However, a property management company can help make guest communication when renting out your property on Airbnb much easier. After all, they’re experienced in dealing with guest inquiries and enquiries. They’re also great at responding to guest messages efficiently.
In addition, property management companies also have access to an array of powerful guest communication tools. This includes automated messaging systems that they can use on behalf of the property owner. The result? You’ve got a lot more free time on your hand to focus on other aspects of your business.
7. Get Help With GuestReady
Looking for an easier way to manage your property? GuestReady can help!
Our mission is to maximise the potential of your investments. We do this by using technology to create a profitable source of income from short and medium let housing. We bring the modern convenience of hospitality to the market, so you get more out of your property investments.
Get in touch today to see how we can make property management simpler and more rewarding!