London is a key place in the UK for investing in rental properties since many people from around the country and the rest of the world are interested in living here. Whether you want to rent a property to professionals or students, investing in buy-to-let property in London can be a lucrative venture. However, managing your own property can be difficult, especially if you are interested in building up a property portfolio and managing several different homes. This is where a property management company will come in to take charge of all the tasks that come with owning and renting out a property to provide you with peace of mind and free up your time.
What are the Main Responsibilities of Property Asset Management Companies in London?
A property management company will take on the bulk of the work that you would normally do as a landlord, including property maintenance, rent collection, finding tenants, property repairs and more. If you want to invest in a rental property but do not want to be called late at night to be told that there’s a leak in your property or the boiler has stopped working, you don’t need to worry about these things with a property management company since they will take care of all that for you. Some of the main responsibilities of a property management company in London include:
Providing Tenancy Agreements:
A tenancy agreement is important for ensuring that both you and your tenants are clear on what is expected of you. This agreement will outline factors such as what is included with the home, how much the monthly rental amount is, how long the tenancy is going to last for, and what the tenants are permitted to do in the property. This agreement will clearly list information such as which date the rent should be paid by, how much notice you have asked the tenant to give before they move out, and that there should be no smoking in the property, for example.
A good property manager can also be put in charge of maintaining your property. Most property managers in London will work with reputable local contractors and tradesmen who they will hire to do any jobs that are required on the property from painting and decorating to freshen the home up in between tenants to replacing fixtures and appliances that are no longer working as they should. With a property management company, landlords don’t have to stress about things like cleaning gutters or making sure that gas and electrical safety certificates are up to date since the property management company can do it all.
Another main responsibility of a property management company is to collect rent payments from tenants. Most property management companies will have the tenant pay the rent directly to their business bank account where they will transfer the funds to the landlord after taking their fee. In addition to collecting regular rent payments, property managers can also intervene if there are any problems with tenants paying rent on time. This could be as simple as moving the payment date to a day that is more convenient for the tenant to arranging debt collection to recoup the funds.
While any landlord would probably prefer their property to be filled with tenants all the time, this is not always possible as tenants may move on to a different home or buy their own property, eventually leaving your property empty. A property management company can help to ensure that the home is not standing empty for a long time and costing you money by advertising it to rent in various different places, arranging viewings for tenants, and screening tenants to ensure that there is nothing concerning that would stop you from renting to them.
As a landlord, you will need to comply with various different legal requirements when it comes to the properties that you rent out. You will be legally required to ensure that the property is safe and habitable and that there are regular checks made on the gas, electric and plumbing systems, for example. You will also need to have the correct license for certain types of properties such as homes of multiple occupation (HMO). When you work with a good property management company, they can arrange for all of this for you to take a lot of the stress out of owning a rental property.
The Benefits of Working with Real Estate Asset Management in London:
While it’s possible to manage a rental property by yourself, many London landlords find that it is worth paying a fee to a property management company to have them take on the bulk of the work. Property management companies provide a wide range of different services and you do not have to sign up for all of them, which is ideal for landlords who do not mind taking on some of the work themselves, but would rather rely on a property management company to do other jobs for them such as finding tenants, writing up tenancy agreements or responding to out-of-hours repair requests.
Another main benefit of working with a property management company is that they can handle any problems that you have with your tenants for you. If a tenant is not paying rent, you don’t have to go there in person and knock on the door – the property management company can deal with this problem by following all the right proceedings including sending demand letters or taking the tenant to court if needed. They can also handle the eviction process if needed, allowing you to avoid uncomfortable conversations and get on with your life.
Finally, good property management companies are highly experienced when it comes to maintaining, repairing and renovating property and will have access to a wide network of contractors, tradespeople and other professionals that they can hire to work on your home. In addition, these companies also have access to more competitive prices compared to individuals which can help you ultimately save money on any work that needs to be done.
How to Choose the Right London Property Asset Management Company:
There is no doubt that working with a property management company is a wise idea for London landlords who want to avoid as much hassle as possible. However, choosing the right property management company in London for you is not always an easy task since there are lots of options to choose from.
The first place to start is by getting recommendations. If you know somebody who is a landlord in London, speak to them about the property management company that they use or companies that they have worked with in the past and recommend. But even if you do not know any landlords, bear in mind that since property management companies also work closely with tenants, it can be worth speaking to anybody that you know who is renting or has rented in London in the past about the company that managed their property and their experience with them.
The internet is also a great source of information about property management companies in London. Check online review sites such as Trustpilot to find out more about the current and past clients of any property management companies that you are interested in to learn more about their experience and use the information to figure out if the company could be a good fit for your needs.
Once you have found some possible property management companies that may be a good fit for you, it’s worth getting in touch and asking some questions. The answers to these questions can then be used to inform your final decision and help you determine which property management company is going to be the best one for you to work with based on your requirements.
Be sure to ask about fees, as property management companies are different when it comes to how they charge. Some charge a percentage of the rental payments that you collect from tenants, while others will simply charge a flat fee. Make sure that you have all the information that you need about payments – will it be collected directly from rental payments or do you have to make the payment yourself? It’s also worth finding out if the fee will still be charged if your property is empty.
Experience is another factor that is worth asking about when choosing the right property management company. Find out how long the company has been in business for and learn more about the properties that they are currently managing or have managed in the past. Bear in mind that you are going to be trusting the property management company with your investment, including giving them the keys to your home and giving them the responsibility to find the right tenants, so it’s important to find a company that you trust and feel comfortable with.
A good property management company can take on a lot of the main responsibilities of managing a rental property, giving you peace of mind and freeing up your time as a landlord.