Why Use A Managing Agent
If you have recently bought a property to rent out, or if you have been a Landlord for a while, you might be weighing up the cost versus the benefits of employing an agent to manage your property.
It’s natural to look at the cost and think “I’d rather keep that in my back pocket”. But have you considered what you will have to do in order to keep the saving, or how much time it will take? What is your time worth to you? It’s worth thinking about…
Firstly, what is your hourly rate in your job or career? One extra hour at work might pay for a month’s worth of agency management fees!
How valuable is your spare time outside of work, and is it worth sacrificing that to work on your property? What could you be doing with that time instead? What is important to you? Is it family, or your career? Everyone’s different. But not many people enjoy managing their tenants or fixing maintenance issues with their spare time. Who wants calls about the boiler breaking down at midnight?
Time is one issue. The second issue is knowledge.
Legislation surrounding lettings and property management is vast, incoherent, complex, and it changes every year. With all the pieces of legislation you need to be aware of as a Landlord, and this is increasing every year, have you got the time or inclination to keep up? What if you don’t keep up and something goes wrong? The consequences could be dire.
In many ways you are personally liable for the tenant’s health and safety. Would you want that on your conscience? There are legal consequences, fines, and prison sentences for getting it wrong - and as mentioned you can’t legally regain possession of your property if you don’t follow a strict set of procedures. We are not trying to frighten you, just to tell you the facts.
A good managing agent is continually trained, qualified, licensed, and insured to look after all of this for you. They have all the systems, software, and processes in place to deal with all of this.
By outsourcing this work, your property will be looked after much more efficiently and effectively than the vast majority of Landlords who manage their property investments themselves. In fact we know from personal experience that almost all self managing Landlords are in fact in breach of the law in one way or another. We don’t blame them, its very difficult to fully comply with all of the burdens put upon them under the law. But this isn’t going to change any time soon. Every year it gets more and more complex as the Government grapple with the demands of a growing private rented sector and its disjointed legal system.
By leaving it to an expert, you are giving yourself peace of mind, and removing all the time and hassle so you can sleep soundly at night in the knowledge it’s all being looked after for you. Unless being a Landlord is your only job and you live very close to the property, it doesn’t make sense for you to manage it. We believe property should provide passive income. Don’t leave yourself exposed, don’t give yourself another stressful job, don’t waste your time. Go and do the things that are important to you instead.