Around 19% of all English households rented privately in 2015 (English Housing Survey). That is more than 4 million residents of the UK, and the number of rented properties continues to increase as the years pass by. For this reason, property owners often seek help, so they choose to hire a property management company.
By hiring a property management company, as the owner, you ease the burden on yourself, and your property runs smoothly. If you are considering hiring a company that deals with the responsibilities of your rental property, but you are unsure as to what the benefits are, the points explained below can help you make a decision.
What is a Property Management Company?
Simple. A property management company is an independent contractor that manages your property. They will supervise the property and take care of the tenants. This means they will act as if they were the owner to maintain a property in order, and keep value to the property’s residents. The types of properties these companies manage include but are not limited to:
- Apartments/ Flats
- Detached Houses
- Semi Detaches Houses
- Bungalows
- Cottages
- Terraced/ End of Terrace
A property management company will bring their experience and expertise to the table, leaving you with the satisfaction of knowing your property is in good hands.
What are the Responsibilities of a Property Management Company?
A property manager takes care of the responsibilities that would typically belong to the owner of the property. These responsibilities are similar to all properties, and they include but are not limited to tenant screening, paperwork handling, rent collection, property maintenance, light handwork, repair request, resolving disputes and handling complaints, collecting and depositing rent, as well as other responsibilities that the owner would normally take care of. These tasks are then reported to the property owner upon completion.
What are the Pros and Cons of a Property Management Company?
Pros
As the owner of a property, hiring someone that manages your property is beneficial as it frees you from property management responsibilities and allows you to have time to focus on future investments.
Cons
The control of the property will have to pass on the property management company as it will be them who handle the main responsibilities. For people who are closely attached to their property passing control can be difficult. For this reason, it is highly important to get the right people involved, so that you know your property is well taken care of and you have nothing to worry about.
Should You Hire a Property Management Company?
You should hire a Property Management Company if:
You have more than one property to manage
According to Paragon, around two million owners own five million properties in the UK (2014). This means that a considerable number of owners own more than one property. Effective management of the property is difficult if you have more than one property that needs to be taken care of. If you belong to that group that has more than they can handle, a property management company is the right solution.
You live far from the property
Going back to the point made above, if you have more than one property, you will be at a distance from at least one property. In other cases, you may have to move far from your property for different reasons. Leaving your property unsupervised is not an option. This is where property management companies can help.
You are unable to manage your property
You may choose not to manage your property because you do not want to deal with the administrative issues, or you may be at a point in time where you are investing, and you need time to work on one project only. Reasons can be endless. In the cases you are unable to manage your property, a property management company is an ideal solution.
Finding the Right Property Management Company
The first step is to make sure the company is part of a government authorized redress scheme and has mandatory client money protection. Do not hire a company that is not legally compliant or hesitates to provide you with documentation to prove this. Then, interview the company to get an insight into their past experiences, and to see how well they understand their responsibilities. Lastly, ask for a quote and a contract template before deciding.
It is always a good idea to interview several companies before choosing the one that suits your needs the most. The right property management company can give you and the tenants the best experience on that property.
Around 19% of all English households rented privately in 2015 (English Housing Survey). That is more than 4 million residents of the UK, and the number of rented properties continues to increase as the years pass by. For this reason, property owners often seek help, so they choose to hire a property management company.
By hiring a property management company, as the owner, you ease the burden on yourself, and your property runs smoothly. If you are considering hiring a company that deals with the responsibilities of your rental property, but you are unsure as to what the benefits are, the points explained below can help you make a decision.