There are many issues that may arise when it comes to managing your portfolio of properties. Perhaps, you are so busy that you struggle to keep on top of the work. You might be endlessly confused by the incessant changes to property regulations. Or maybe you live too far away from your properties to be able to manage them effectively. It’s no wonder then that around six in ten landlords use residential letting agents to manage their properties.
If you are considering using a property management service, then you will no doubt want to know what kind of costs are involved. We have collected all of the relevant information for you. Take a look:
Typically, property managers charge a flat fee of 10-20% of the rent for their services, inclusive of VAT. Note that you may be able to negotiate management fees. These fees include tenant-find, rent collection and the day-to-day running of a property.
You are still required to pay the costs of any maintenance or repair work to your properties. Yet, your property management service will likely have a network of trusted and reasonably-priced contractors on call. This means that you are likely to pay less for any necessary work than you would do if you were to seek out contractors by yourself.
Being a landlord in London can be confusing. There are over 170 Acts & Regulations to consider, so, how do you know if you are compliant?
Bear in mind that you can offset letting agent fees against your taxes when filling out your self-assessment form.
Protect yourself by ensuring that your chosen management service is part of a professional organisation. For instance, the Property Ombudsman, the Deposit Protection Service, the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA). They should also have a client money protection scheme in place. With all of the above, you can rest assured that the letting agent adheres to the best codes of practice.
Fees for landlords may seem high but if you consider the fact that time is money, you could actually make savings by using a property management service. This is because they carry out a lot of the hard work for you, leaving you with time to focus on your investments.
As you shop around to find a property management service, do not simply fall for the cheapest offer. Choose an agent that has the most perks and the best contacts.
At Garrett Whitelock, we do not charge any upfront administration fee for landlords who choose our full property management service. Instead, we deduct charges from the rent each month. This will benefit you greatly by helping to maintain cash flow.Furthermore, we abide by a ‘fair repair’ policy. This means that we will never hire a contractor unnecessarily. We also review contractor costs regularly to make sure that they are below market rates. For more information, please visit our property management page.
We’re here to help with any property-related queries you may have
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Lee Whitelock
Director
Being a landlord in London can be confusing. How do you make sure you are compliant?