The world has changed and evolved into several new things over the last decades. But one thing that has stayed constant is property. Owning or managing a property is one of the best ways to make money, even in this technology era. Everyone needs a place to live. With Covid in action in the UK and the introduction of SDLT relief, more and more people want to own property or buy investment property for generating a steady income for their homes. It is a safe and secure way to earn. But like other businesses, there are a few new things you have to learn while becoming a property investor.
If this is your first time as a property investor, this article will help you. We have collected all the vital information you will need.
What is Property Management?
Managing your investment property isn’t as easy as it sounds. It’s the act of taking care of many issues related to property, such as occasional maintenance, putting tenants in, managing the mortgage etc. In a nutshell, property management is someone’s regular supervision of residential, commercial, or industrial real estate. For larger portfolio, you may need a property managers who will take charge of daily repairs and routine maintenance, safety, and property preservation. They are usually hired by portfolio landlords, the proprietors of investment properties such as apartment buildings, industrial parks, shopping malls and private home communities.
Property maintenance entails various activities ranging from dealing with occupant problems to arranging arrangements for trash pickup, grounds keeping, and janitorial services. Effective property maintenance ensures that it runs effortlessly and efficiently.
Tips for Property Management:
If you have become a landlord for the first time and you are a bit lost about where to begin with, this article is here to help you out. We have included some tips for you to kickstart your journey as a landlord. The information is effective and will surely help you out.
1. Protocols and Policies
The first rule you should learn is regarding protocols and policies of managing buy to let properties in the UK. Residential apartment building has established rules which the tenants have to follow. Any kind of failure to follow the rules might result in consequences. It is your job as the landlord or property investor is to make sure that the occupant follows the protocols and policies.
To prevent miscommunications and possible issues with tenants, property managers must have protocols and standards in place. The guidelines for tenants should be written down and issued at the time of signing the AST or Assured shorthold tenancy agreement between you and your tenant. Similarly, landlords must have procedures in place for a variety of circumstances. If a tenant ignores the parking rules, the property manager must obey the process, which could include issuing a notice or having the car towed.
Create a simple and effective process for dealing with a range of property problems, such as maintenance demands and rental disputes. If an appliance fails or a tenant wants to file a lawsuit with the administration, they need to know what to do. If you employ a letting agency to manage the tenancy, they will do that for you for a fixed monthly cost, generally between 8-10% of the monthly rental amount .
Read more about privately renting a property in the UK.
2. The art of communication
As a landlord, you will handle a large variety of issues. It is crucial to keep in mind that a clear and assertive form of communication can help you a lot. The renters are the one with which you will have to communicate. You must be available to respond (in a timely manner) to any queries or complaints that they might have. Setting up communication email address where someone wants you can conveniently contact you is the perfect way to manage communication. It’s much easier to receive and respond to requests/complaints if you have a well-organised method.
3. Learn the law
Owning a property or moving into a new property, both tasks are under some set of laws in the UK. These laws make sure that the landlord or the tenant both don’t get into trouble. There’s no alternative for learning the rental and property laws inside and out from the beginning. As a landlord, expect that you need to deal with and have solutions to a wide range of questions, from routine upkeep to resolving disputes and what it takes to terminate a contract. In preparation, review the most up-to-date details on rental arrangements and eviction notices. Avoid hiring unlicensed contractors for electrical and plumbing services since this may be unlawful in your jurisdiction and may make you vulnerable to the insurance provider in the event of an accident.
UK’s largest membership organisation for private residential landlord, NRLA has courses for landlords that would be much helpful to gain knowledge.
4. Stay updated with new trends.
One approach to improve as a landlord is to understand your long-term plans and priorities. Yes, balancing all in today’s world is still a lot. But it’s also essential for landlord to consider what the future holds for the business. What are you striving for? Consider your current plans and results, and think about what you can do to enhance them.
One way to ensure that you are working towards your future is to keep yourself up to date with new changes in the market whether it’s about pricing or change in laws. You’ve come to the right place if you’re looking for property investmentt advice and guidelines. To improve as a landlord, you must keep an eye on everything, from business strategies, new property industry dynamics, and any updates to local laws and regulations. This will demonstrate to your customers (tenants) that they can stay longer and have a healthy relationship with the landlord. Good tenants usually take care of the properties and that in turns can save you from many repair costs.
5. Proper and timely maintenance:
Regular management is one way to ensure that you have the right tenant to look after the asset while still ensuring that it keeps its long-term value. With too many options, potential renters are being pickier about property conditions and will not invest their money for a house that has seen better days. You will enjoy the benefits of a top rental price by keeping up appearances with a fresh coat of paint as required, contributing to the appropriate maintenance, or even adding an air conditioner or dishwasher to show that you care for your tenants.
Furthermore, you are more likely to attract a tenant who pays their rent on time and manages the house as though it is their own home. And, let’s face it, a well-kept house will be a moneymaker in the long run, as it will continue to appreciate rather than depreciating due to unattended wear and tear.
6. Regular Inspection
A way to ensure that the property is in its best shape and form is regular inspection of the property. This is perhaps the clearest of the property management tips. Inspecting your investment assets thoroughly and regularly will help you find problem areas. Being on top of the renovations or maintenance would demonstrate to renters that you are concerned about your work, resulting in higher satisfaction and happier customers.
7. Organisational Skills
One of the primary skills a manager needs to develop or work on is organisational skills. When you have so many tasks on hand, it can get tough to keep track of every job. But with a few guidelines, it is very easy for you to organize your schedule.
· Make a to-do list of each day, so you know exactly what you are going to do.
· Investing in a planner is very beneficial.
· Google Calendar is your best friend for scheduling meetings. It reminds you before the meeting and helps you stay organized.
· Keep a record of financial records as well. It’s essential to keep detailed financial records for tenant rent and property costs, including repairs, and garbage collection. It would help if you saw how much money is flowing in and going out.
8. Some additional tips to keep in mind
If you think work overload will get to you if you have multiple properties, it is advised to hire a bookkeeper or an assistant to help you take care of the duties. Outsourcing help is an excellent way to reduce the burden on your shoulders.
Hire the right individuals for your staff, take an active role in what they do, and connect with them on a daily basis because, at the end of the day, it’s your asset, and you need to make sure it’s well cared for.
Property management is a partnership where you’re dealing with tenants as fee paying customers. By doing your work with trust and gratitude, you will nurture those relationships.
If this is your first time as a landlord, you might feel a little overwhelmed with the responsibilities and stuff you have to learn, but you must keep on trying and learning. It will get more manageable with time for sure. This article is a starter pack of all the things you need to get acquainted with to become a good property manager for your own investment portfolio.
We hope this article provided you with preliminary information about becoming a successful property invester.