Last month I created a blog post about property management in response to one of the most common questions that I am asked here at Belvoir Sheffield- Whether or not to take on a lettings agency to look after the properties in a landlord’s property portfolio?
My first post really struck a chord with many residential landlords who have been toying with the idea of taking on an agent, but wanted to manage their properties without the additional cost of an agent. In light of the response generated, I have decided to go through some other important considerations which should be taken into account when deciding whether or not to self manage a property, and I hope to spark some Eureka moments in doing so.
1. Are You Insurance Savvy?
Landlord insurance can be an absolute minefield and something that should be taken extremely seriously. Landlords require a variety of different insurances and the most common is perhaps Rent and Legal Protection Insurance, in order to provide cover in the event of rental arrears and to cover any legal costs involved with eviction. Designed to cover the landlord against any possible arrears until vacant possession is obtained, Rent and Legal Protection Insurance also covers any legal expenses as a result of a tenant breaching the tenancy agreement, or unauthorised occupation of the property. All Belvoir landlords have access to our unique bespoke insurance packages. These include the above, house building insurance and home contents insurance. Our insurance packages are comprehensive and typically cost a third of their nearest competitor – saving you money while ensuring your property is properly protected.
2. Legislation Update
It is unfortunately very common for DIY landlords to fall 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 such as Belvoir can deal with this unnecessary strain and ensure that landlords keep on top of such changes.
3. The Dreaded Void
DIY landlords can be susceptible to high tenant turnover and increased void periods. In periods where the property is left empty, landlords can find themselves investing a lot of time and money in making sure that the property can be returned to the market. In such situations, time is needed to place advertising, whilst going through the tenant application and vetting process. At Belvoir we take this work from you and ensure that void periods are reduced from the very beginning. Belvoir’s website gets approximately 12 million hits a month, and exposure on this and other major sites like RightMove will speed up the letting period by generating more enquiries.
4. Rent Rises
Some landlords may decide to increase their rents over time and this can often cause conflict between the landlord and tenant. Using a lettings agent as a negotiator is often a very good idea as it provides a neutral figure for both parties to communicate with.
5. The 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. This is because more and more tenants prefer to deal with an agent acting as an interface between the two parties. This therefore means that managed properties are let out much faster than those handled by the DIY landlord.
Belvoir Letting Agents in Sheffield are 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 and Mortgages.
