Traditionally landlords have favoured the DIY approach to property management in a bid to save both time and money, but latest industry figures indicate that more and more landlords are switching to a full managed service. Now Belvoir Sheffield the leading letting agent in Sheffield investigates the reason for this sudden shift.
Rick Flay, Director at Sheffield letting agents Belvoir, said, “DIY property management has long been a popular choice with landlords looking to save money, but here at Belvoir Sheffield, we are in fact finding that an increasing number of landlords who have traditionally used us for a ‘let only’ service are switching to full property management as it the safer option.”
Those who take the DIY route to property management are fully responsible for avoiding void periods, dealing with nuisance tenants and resolving any a landlord-tenant disputes, should they arise.
Rick added, “At Belvoir Sheffield, we have certainly seen a sudden shift away from DIY property management, to the extent that many tenants will now ask us if the agent or the landlord is managing the property, choosing only to view only those properties that we look after, as they think they will be looked after better.”
Although the cost savings achieved from DIY management have always been a draw for many landlords, tough legislative crackdowns and tougher penalties for landlords who fail to adhere to the rules, have encouraged many landlords to opt for the services of a letting agent.
“In the current marketplace, landlords who have fully managed properties in their portfolios will generally achieve much higher rents than tenant finds. What’s more, getting a reputable lettings agent to manage your property is not as expensive as you may think and mistakes caused by self management can cost you thousands”, added Rick.
Potential pitfalls of DIY property management can include:
- Falling foul of private rental legislation. Landlords have a legal responsibility to adhere to the very latest legislative changes, but when teamed with personal and other work commitments, this can be extremely difficult. A reputable lettings agent can deal with this unnecessary strain and ensure that landlords keep on top of such changes.
- High tenant turnover. Where a landlord experiences a high tenant turnover, they will have to continually invest in preparing the property to return to the market as well as advertising it and going through the tenant application and vetting process, which can be not only costly but time consuming.
- Dealing with insurance issues. Making sure that you are properly insured and at the correct price for the correct cover can be a minefield for many landlords, causing unnecessary stress. In addition to this, if you are using contractors, making sure that they have got public liability insurance is crucial. Seeking the services of a reputable lettings agent will put your mind at rest.
- Maintaining the notorious landlord-tenant relationship. More and more tenants are asking if the agent or the landlord is managing the property and then choose to view only those properties that the agent is looking after, as they think it will be looked after better and because the agent will act as the interface between the two parties. This therefore means that managed properties are let out much faster than those handled by the DIY landlord.
Rick added, “With so many potential pitfalls for landlords managing their property portfolios themselves, it is not surprising that more and more landlords are moving away from the traditional DIY approach to property management.”
Belvoir Lettings Agency Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances.
