Owning and renting out a luxury property in London can be a lucrative venture, with many people willing to pay more to live in the capital. However, many landlords who own luxury properties will choose to work with a property management company who can take over the bulk of the responsibilities when it comes to marketing the property, finding and vetting tenants, drawing up tenancy agreements, collecting rent, maintaining the property, carrying out repairs and dealing with any issues. For luxury property landlords, working with a property management company can be a worthwhile investment to provide peace of mind and free up your time.
What are the Main Benefits of Property Management in London?
Whether you already own a luxury property in the capital or are considering an investment for the future, there are many benefits of working with a property management company. For a percentage of the rent that you collect from your tenants, the property management company will offer a wide range of services that you can use. These include:
· Pricing the Rent
Deciding on how much to ask for in rent can be tricky for landlords as there are a lot of factors to take into consideration, and you want to make sure that rental prices are competitive enough for tenants to be interested in what your property has to offer. A property management company can offer support in this aspect by performing an evaluation of your property and the area where it is located to help you determine the ideal rental price to ask.
· Property Marketing
Marketing a luxury property is not always easy as it’s important to ensure that you are putting the advertisement in front of the right people. A good property management company that is experienced in managing luxury properties will be able to use the best marketing strategies to ensure that your property is found by the ideal prospective tenants and is in with the best chance of being filled quickly.
· Tenant Vetting
The last thing that any landlord wants when it comes to renting out a luxury property is to deal with tenants who cause damage or do not pay their rent. A property management company can help you avoid these issues from the start by running a range of checks on prospective tenants to ensure that they can afford to live in the property and that they have good references.
· Tenancy Agreements
A property management company can also ensure that both you and your tenants fully understand what is expected of you when renting out your luxury property. They can draw up a legally compliant tenancy agreement detailing factors such as the amount of rent to be paid each month, when the rent is due, how much notice to give before moving out, and what the tenant is and is not permitted to do in the property.
· Maintenance and Repairs
Maintenance and repairs can often be some of the most tedious responsibilities to take care of as a landlord. Homes will need regular maintenance and checks, and in some cases, repairs will need carrying out – which can happen at any time, and is often something that landlords dread. When a tenant calls to let you know that there is a burst pipe or the boiler has stopped working, you need to move quickly to rectify the problem for them. A property management company can take care of all this for you, so you don’t have to worry each time the phone rings.
· Rent Payment Problems
Most good tenants will pay their rent on time every month and you should not have any problems. However, as a landlord there is always the risk that you could end up dealing with rent payment problems. Tenants repeatedly paying rent late or missing rental payments can be a huge problem for landlords, and a headache to deal with. When working with a property management company, you will have peace of mind that they can deal with any problems that might arise with the payment of rent.
Finally, evictions are something that no landlord looks forward to. Most of the time there are strategies that can be put in place to avoid evicting your tenant, but in some circumstances, there is no other alternative. A property management company can take care of the eviction process from you from start to finish, making it less stressful.
What to Look for in Luxury Property Management in London
If you’re investing in luxury property in the capital and want a property management company to look after your property portfolio, there are several key things to look for when it comes to finding the property management company that is the right fit for you. If you have already shortlisted some potential property management companies, it’s a wise idea to dig a little deeper to find out more about certain factors, including:
Cost: It’s always worth enquiring about the cost since different property management companies will have different fee structures. Along with finding out how much of a percentage of the rent they take, it’s worth determining how much you will have to pay if the house is empty and any other fees payable.
Reputation: The main thing is to leave your luxury property in good hands, so it’s important to find out more about the reputation of the property management companies that you are considering. Read online reviews and speak to current clients if you can to find out more about what they think about the property management company in question and if they would recommend the service.
Experience: Any landlord will want to ensure that they are handing over the keys to their property to somebody who is experienced. Ask how long the property management company has been operating, how many properties they manage, and if they have experience managing luxury properties.
The Benefits of Block Property Management London or Leasehold Property Management London:
If you own a block of luxury apartments or a leasehold luxury property in London that you want to rent out to tenants, working with a property management company can have a range of different benefits. A good property management company that has experience with managing these types of properties can help make sure that everything runs smoothly for you, your tenants are satisfied with their homes and the service that they receive, and you continue to get the best returns on your investment.
A block or leasehold property management company can also provide legal advice when needed as related to the type of property that you own. They can ensure that your property meets all legal requirements and that you are aware of any necessary licenses that are required for you to let the property to tenants.
Prime Property Management in London: Is it Worth it for Luxury Homes?
If you have purchased or are considering purchasing a luxury property to rent in London, you may be wondering if property management services are worth the cost. This will often depend on the specific circumstances of the landlord. If you do not live in London, for example, you may find that investing in a property management service is ideal for you as this will provide you with peace of mind that somebody will be able to go out to the property when needed if you are a long distance away. Another situation where landlords will often invest in property management services is when they have a large property portfolio. If you own several luxury properties in London or an apartment block, for example, it would be extremely difficult to manage all of the properties on your own and working with a good property management company will certainly be worth the money that you spend.
On the other hand, you may decide that a full-service property management agreement is not necessary for you if you own one or two properties in London, live close by and have the time to manage the properties on your own. However, this doesn’t mean that you won’t still benefit from the services offered by property management companies as many offer a wide range of options that you can pick and choose based on what you need. For example, you may benefit from using a property management company to price and advertise your property, find and vet tenants, and draw up tenancy agreements, but be able to maintain and repair the property on your own and are happy to deal with any other tenant issues such as payment of rent.
Whether or not to work with a property management company if you are investing in a luxury property to rent in London is a decision that will be based on several factors. For many landlords who are renting out luxury homes in the capital, the decision to work with a property management company is a worthwhile one since it provides them with further peace of mind and reduces the workload that is involved with owning and letting any property.