The property management industry has shown significant growth in recent years as investors look to ensure their property portfolios are managed by experts in line with ever changing regulations. For many investors, self-management of their property investments is a false economy and does not fully utilise their skillset. We will now take a look at the top 10 reasons why you should use a property management company in the future.
To save time
Property management is a lot more time-consuming than many people appreciate. When investors have numerous properties it can become all-consuming, allowing relatively little time to find the next investment. Reputable property management companies have been doing this for years. They have their own processes, their own systems and have been able to streamline procedures to maximise their efficiency.
To save money
When you utilise the services of a property management company you simply hand over the management fee each month and they will do the rest. They have specific tasks to complete, ongoing monitoring of tenants and properties, as well as the collection of rent. Those who may be considering self-management of their property assets ought to consider this point very carefully. If you were to cost the time you spent managing your properties, compared to the cost of a property management company, you might be surprised. That is before we even begin to look at the lost opportunities from an investment viewpoint as a consequence of spreading yourself too thinly. Maximise your own skillset and utilise those of third parties where you may be lacking time or experience.
To reduce stress
In the early days, with a relatively small property portfolio, the odd phone call from a tenant with a problem may not be too stressful. However, as regulations tighten, tenant rights are expanded and everything becomes a lot more complicated, that stress-free life you dreamed of could start to crumble. Do you have enough hours in the day? Are you waking up stressed in the morning? The appointment of a property management company should not be seen as a cost. It should be seen as an investment in your business, giving you time to focus on your own core strengths.
To create the ultimate lifestyle
In this era of low interest rates, many people now view property investment as their future pension fund. The regular flow of rental income should cover all their financial liabilities leaving some surplus for the finer things in life. All of this time, money and effort are focused towards the final crescendo of retirement. While many people have one eye on the long-term and eventual disposal of their property assets, they also dream of that ultimate lifestyle before retirement. Property management will take away all the stresses and strains of contact with tenants, the changing regulatory environment and leave you with more time to enjoy the fruits of your investment.
To have access to approved experts
The management of one or more properties is relatively straightforward on paper but in reality it can be stressful and time-consuming. Utilising the skills of a property management company not only allows you direct access to their professional services, but also those of their wider professional network. You will find that many property management companies have close working relationships with builders, plumbers and other tradespeople. Regular referrals can lead to more competitive rates, relatively quick call out times and above all, reliability. It is in the best interests of any property management company to offer as many direct and indirect services to customers as possible. This ensures they will remain relatively close in terms of a professional relationship and are unlikely to look elsewhere.
To be able to find tenants quickly
Finding tenants can be extremely time-consuming and expensive. Advertising in the local press, online and directly in local establishments such as universities takes planning. The Holy Grail of buy to let investment is long-term, trouble-free tenants. The quick turnover of tenants not only disrupts your rental income flow but also increases your advertising expenditure. The vast majority of property management companies will be able to assist in finding tenants relatively quickly. This may be via their own additional services or relationships with local estate agents and rental companies. The longer your property is vacant the greater the reduction in your rental income.
To have support with any problem tenants
On occasion, you may come across problem tenants in need of gentle handling or face the full force of the legal system. Over the last few years we have seen a significant increase in tenant rights and, to a certain extent, a reduction in landlord rights. There are ways and means of serving notice and ways and means of serving warnings which need to be done correctly in the eyes of the law. From relatively minor tenant issues to full-blown eviction notices, these issues can be time-consuming and expensive. Utilising the support and experience of a property management company could be priceless.
To be able to buy property that is far away from you
Over the years, the internet has opened up both national and international markets to buy to let investors. The opportunity to diversify your portfolio into any part of the UK and overseas has not gone unnoticed. One of the main issues with diversification into different areas is locality and access. If you are located hundreds of miles away from one of your properties, how can you be a hands-on landlord? You could literally be stretched from coast to coast, adding to your stress, expense and ability to focus on expanding your portfolio. It therefore makes sense to investigate the hiring of a local property management company with experience. They will effectively be your eyes and ears on the ground and protector of your assets.
To benefit from their market and tenant management expertise
Many people make the move into property investment/management expecting the jump from theory to practice to be seamless. After all, property investment is simple: buy a property, find a tenant and then sit back and watch the money roll in. If only it was that easy! There are many property management companies out there with years of experience, often more than willing to take you under their wing and assist where they can. They may be able to advise you on different marketing strategies while using their expertise to manage your tenants in a seamless fashion. As previously touched upon, if your main skills are identifying and purchasing property, it makes sense to utilise the skills of marketing and property management companies to complement your strengths.
While formal networking events may not be for everybody, working with experienced property management companies can often lead to new opportunities. Access to properties before they are listed and news about up-and-coming property developments are two areas in which you could benefit. We live in a world where recommendations and referrals often speak loudest. Building your own professional network will offer more opportunities to mix with like-minded people, often leading to recommendations and referrals. This also gives you access to an array of additional services and a cumulative knowledge bank you could only dream of.