Property Management Avoiding Common Mistakes.
Owning a property and renting it out is a challenge in itself, with the amount of time and effort that needs to go into advertising, viewings and then there’s the management side once a tenant moves in, not to mention all of the additional legal and regulatory processes that need to be followed. Landlords have a lot to think about.
A good Managing Agent should take care of all of the legal obligations on the landlord’s behalf. However, landlords should also make sure that they maintain a good relationship with their tenants, as happy tenants will generally pay their rent on time and look after the property.
A few common mistakes that landlords make which can upset their tenants, leading to future unnecessary problems are,
Ignoring property maintenance issues, as a landlord, it is your responsibility to ensure that the fundamental utilities of the property are maintained to a good standard. For example faulty heating or water leaks etc. are up to a landlord to repair and it can be annoying for tenants if landlords take too long to fix these problems. Not only can this cause friction in the relationship with the tenant, it can also cause the property to deteriorate, by not repairing the leak can cause bigger problems in the long run, leading to greater costs and at worst can even make the property uninhabitable for a period of time, potentially resulting in a loss of rental income. If the property management issue is an emergency i.e. it relates to heating, plumbing, gas or electric it is useful to have some type of Home Emergency Cover in place to help with the cost of repairs.
Not allowing tenants a bit of flexibility, whilst landlords should ensure that the relationship with their tenant remains professional at all times, it is also good to remember that they are also people who are using your property as their home. As such, offering a bit of flexibility when it comes to decorating etc. This can go a long way in making tenants happy. It can also add value to your property by increasing the rents if it is modern/desirable for future tenants.
Having the wrong insurance, Standard home insurance is not designed for landlords or rental properties, landlords will need to take out specific landlord insurances that cover their needs. Specialist buy-to-let insurances can cover buildings and contents policies, as well as public liability insurance is needed as well, which allows a landlord to be covered against all possibilities of claims. Landlords can also take out rent guarantee insurance, which can cover unpaid rent if a tenant fails to make their rent payments and remains in the property, along with the cost of issuing notices and court costs etc.
Not familiar with property management & legal requirements, Many landlords choose not to use a managing agent, which can save money in the short term, but often leads to greater costs in the long run, in terms of time and resources as well as financial. By having a good managing agent dealing with the administration and legal obligations the landlord can take a back seat focusing on enjoying the monthly rent coming in.
To speak to Spencer about renting your property, please call us on 0114 268 3682 or have a look through our website: Spencer