There’s no alternative way to say this: Property management is a laborious, full-time job. It’s not for the weak. The reality is, most rental property homeowners play it safe and use a property management company. There are some, however, who insist on striking out on their own.
Let us tell you — and pay serious attention — there’s a lot of work, effort, and sweat goes into managing your own property. Therefore, trust us when we say that this supposed “passive supply of income” is much more active than it appears.
If you’re one amongst these few landlords who wants to self-manage a property, you’re most likely thinking, “What might go wrong?”
Here is a list of some of the duties that are part and parcel in property management. (And, yes, anybody of these will and can fail at any moment.)
First Impressions and Communication
If you want to manage your rental on your own, stop and think about the amount of time and work that managing a property entails — from advertising for new tenants, the upkeep of the property, legalities involved and managing money. Self-managed landlords need to treat their property like a business, as opposed to a casual part-time interest that can be dipped in and out of when it suits them.
IMPORTANT: Potential tenants can spot an unprofessional landlord, newbie a mile away and they will move on to another property during their search for a new home when they do. So by treating their property like they would a paid job, self-managed landlords will make a good impression from the start.
By agreeing to take on the task of self-managing a rental property, the legal responsibilities will fall directly to you. You’ll have to brush up on the current property and local authority laws and regulations applicable to your rental property
These vary from:
- Having a correct Assured Shorthold Tenancy in place and being well versed in eviction law
- ADA compliance
- EPC requirements
- Gas safety certificate
- Electrical safety
- Fire safety
- Tenancy Deposit Protection
- Maintaining a safe and clean environment
- Being covered with landlord insurance
When self-managing a property, you will be responsible for all of the finances, from collecting rent, paying taxes and funding repairs, so it is necessary that they have efficient procedures in place to prevent problems occurring.
You must make sure there is an efficient rent collecting system in place before taking on new tenants.
Tenant referencing is a vital step to try and prevent bad tenants from moving into your property.
Getting tenants checked will help sift out the bad apples from the bunch, leaving you with peace of mind that the rent will be paid on time and the property will be looked after.
Marketing the Property
You will also need to manage the advertising and viewing process when looking for new tenants.
Listing vacant property online is vital in the digital age, as the majority of tenants looking for a new home go to the online property portals first before they start looking elsewhere.
Some self-managed landlords are unsure as to how much rent they should charge. Getting the price right is a key ingredient when creating an online property listing because tenants can tell when a property is overpriced and will move on to another.
This is just a partial list of what’s in store for a self-managed property manager. We’ve left out things like maintenance, rental appraisals, and inspections. There is a lot involved in managing a property — that’s why we’re here to shoulder the burden.
If you’re tired of headaches and hassles of managing your own property, give us a call immediately. Our full service property management solution will save you time, money, and a lot less sleepless nights.