Do I Need Property Management Services?

Posted by The Landsite on 10th October 2023 -

First of all, what is property management?

Property management involves hiring a qualified professional to oversee various aspects of your rental property, such as finding tenants, handling repairs and maintenance, and ensuring legal compliance.  Property managers act as an intermediary between landlords and tenants, streamlining the rental process. As such, it has become an integral part of real estate investment. 

In this article, we explore what are some of the pros and cons of property management services. 

The Pros:

Legal Expertise

Property managers bring a certain amount of legal knowledge to the table and in turn, reduces the level of risk associated with owning rental properties.  Maintaining legal standards such as gas certificates, HMO compliance regulations and being kept informed of any new landlord legislation should all be considered part of management services.

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Time Savings

Property management services saves landlords significant time by overseeing rent collection, lease agreements, property inspections and many other daily responsibilities. This is particularly beneficial for those with multiple properties or HMO's (Housing in Multiple Occupation) or those who have other full-time commitments.   

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Tenant Retention

Most professional property managers maintain a comprehensive tenant database and can source reliable tenants to your specific requirements reducing the number of potentially unsuitable tenants and consequently cuts down on unnecessary expenses.

Maintenance and Repairs

Property managers arrange and oversee maintenance and repairs, ensuring that properties are routinely well maintained.  This can lead to increased property value and tenant satisfaction. 

The Cons:

1.    Costs: Property management services come at a cost, typically a percentage of the rental income.  For some property owners, this expense can eat into their profit.

2.    Lack of Control: Property owners relinquish some control over their properties.  Managers make decisions on your behalf, which might not always align with your preferences.

4.    Quality of Service: The effectiveness of a property manager can vary widely.  Choosing an unreliable manager can lead to issues with tenant placement, maintenance, and overall property management.

6.    Legal Responsibilities: Property owners remain legally responsible for their properties, even when they employ a manager.  Mismanagement or negligence by the property manager can still reflect on the owner.    

8.    Communication Challenges: Misunderstandings can occur between property owners and managers, particularly if expectations are not clearly outlined in the management agreement. 

Property Management Software

 Technology has a lot of catching up to do within the real estate industry however an increasingly effective solution for landlords is the use of property management software solutions.  Below are the property management software businesses listed on The Landsite:

Lofti - Property Management Software for those who Let and Manage.

Alphaletz - Award-winning property management software for portfolio landlords and property managers

Re-Leased - Commercial property management software

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Whether you are considering enlisting the services of a property management company, or looking at the possibiity of proptech solutions to manage your property portfolio yourself, it is imperative to consider all the pros and cons to find the best outcome for you.  A landlord employing the service of a property manager may outweigh the costs involved.  However, it is advised that you do your homework to find a property management service with credentials aligned to suit your requirements.  

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