It is predicted that by 2021, one in four households in the UK will be renting privately. This is largely due to increasing property prices and average wages not being able to meet the demands of home ownership. Furthermore, the majority of people who prefer to rent are young professionals who are still years away from saving enough to buy their own houses.
With this statistic looming above the housing market, it is safe to say that having rental properties will continue to be big business in the years to come. While it may be a prolific industry, owning and managing a rental property is not easy work. It requires dedication, commitment, and hours of effort in order for the owner to successfully keep track of the business.
Landlords today are looking towards the assistance of property management consultants like Gerald Eve Property Co who will be responsible for handling all aspects related to property management. These include advertising, searching for tenants, rent collection, and maintenance.
Why do you need a property management firm?
Self-management has its perks, which include having greater control over the management of a rental property. But landlords know how difficult and stressful it can be. Landlords who hire a property management company are likely to earn double what they would if the rental property was self-managed. This is because property management companies have the expertise in advertising and searching for tenants.
In line with this, since you have an expert team handling advertising, there is less possibility of getting undesirable tenants. The property management team will screen prospective tenants and use a vetting procedure that will filter out tenants with less than stellar history.
Shorter void periods
Void periods cause the landlord to lose revenue. This can be avoided, or at least shortened if you have a property management company. They are able to use marketing strategies effectively and in most cases, they already have a list of prospective tenants ready to take over. They will also ensure that the rental rates for your property remain competitive because it is part of their responsibility to keep track of the rental market.
The rent is paid on time
Timely payment of rent is what makes a rental business successful. More often than not, landlords struggle to collect rental payments from tenants causing unavoidable financial distress. A property management company uses a rental collection system which guarantees the landlord gets paid when the rent is due.
You can avoid expensive legal issues
Owning a rental property entails compliance with certain regulations. When a landlord does not keep abreast of these requirements, they may end up paying hefty fines or worse, be embroiled in legal issues. This can be avoided with the help of a professional property management company. They have the expertise and up-to-date knowledge on all the requirements that need to be met in order for a landlord to remain in compliance. This gives the landlord added confidence that they are operating within the standards required by the government.