As the number of accidental and private landlords looks set to rise throughout 2012, Rick Flay, leading letting agent in Sheffield is outlining why those new to the market should use a professional letting agent, rather than taking the DIY route to property management.
With evidence suggesting that one in three home owners are now entering into the buy-to-let market, Sheffield lettings specialist, Belvoir, is warning anyone new to residential lettings to be aware of the many pitfalls, including strict regulatory requirements, insurance considerations and tenant reference and checking procedures, before making the decision to opt for DIY property management.
Rick Flay, Director at Belvoir Sheffield, which offers a wide range of property to rent in Sheffield, said: “Our Research has shown that attempts to save money are the main motivator behind people managing their own properties, however it is false economy.
“Becoming a landlord is quite a daunting task and that’s why we urge people to seek out initial free and impartial, independent advice from an expert letting specialist such as ourselves, before attempting to go it alone.”
Belvoir Sheffield, which has an office on Campo Lane is advising those new to the market to consider the following points when deciding whether or not to opt for DIY property management:
What is your time worth?: If you have a full time job or children to look after, consider where your time is best spent. Managing a property is a full time job in itself, so if you are taking on a property as a ‘second income’, keeping your full time job and outsourcing the management of the property may well be the best idea.
- Quality Of Leases: Anyone can buy a lease document in a shop, but ask yourself how up to date it is and does it offer you the landlord with adequate protection. Belvoir Sheffield amend lease documents 2-3 times each year.
- Keeping Up To Date With Legislative Issues: As a landlord you are expected to keep up to date with any legislative issues relating to your property. Strict regulations covering compulsory gas, electrical and fire safety checks, mean that there are many specialist rules to consider and landlords who fail to comply with these can find themselves in hot water.
- Managing Late Payments and Evictions: If you are a landlord, how good is your discipline? You will need to check that rents are paid on time, and if they are late you will need to know what you can do legally and when you can do it? You will also need to know which notices to serve and when, along with being prepared to have some form of conflict with you tenant. Tenants often feel that a third party approach is less confrontational.
- Conducting Regular Inspections: You should aim to visit the property every 3-4 months to check its condition and to report any key changes. This will add strength to your case if a dispute should arise. This can take a lot of time and follow up reports need to be made.
- Quality Marketing Power: If you opt for DIY property management, you will need to market the property yourself. You will need to source and purchase advertising, which can be both costly and a daunting prospect for someone with little or no marketing background. Belvoir Sheffield market on over 30 websites, so volume of enquiry’s and the speed that we Let out your property is not comparable.
- Compiling Air Tight Inventories: Under the Tenancy Deposit Scheme (TDS), landlords now have to prove their case when trying to keep a proportion of a tenant’s deposit. An increase in badly prepared inventories and a decrease in landlord education surrounding ‘fair wear and tear’ is making this very hard to do. The UK landlord now has as little as a one in ten chance of winning a dispute against a tenant. This is why you should seek professional advice, and get a professionally drawn up inventory.
- Deposit Compliance and Dispute Resolution: When you take a deposit from a tenant it has to be registered and a notification must be sent. Do you know where and how to do this and the deadlines involved? If not you are likely to be fined.
- Credit and Reference Checks: Sourcing the right tenants can be tricky. If you fail to attract the right sort of tenant to your property, you could end up dealing with non-paying tenants or even worse- a long standing dispute. Here at Belvoir Sheffield, we carry out in-depth credit reports, and request references from previous landlords and current employers, on behalf of the landlords of our managed properties.
Access to Quality Tradesmen: If your tenant has a water leak in the middle of the night or an emergency on Christmas Day, as a landlord you are responsible for being on call 24 hours a day. It is your responsibility to either fix any repairs at the property or to source quality tradesmen. A professional lettings agent will take care of this on your behalf.
All in all, for a small cost saving, we would ask is it really worth the risk?
Belvoir Lettings 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 and Mortgages.
For more information, please visit www.belvoir.co.uk/sheffield.
