There are many reasons you might want to work on a buy-to-let investment, most notably because there are significant benefits to holding Property, especially in a diverse investment portfolio. Things could be complicated, though, so you need to know as much as possible before deciding to move. Let’s get over the basics of what needs to be done:

Doing the Prep Work

If you are reading this, then you are ready to put some work into research. This is important when it comes to buy-to-let investment. Knowing the area, you’re planning on investing in is also a major first step. This is much easier nowadays, thanks to the internet.

You should look for forecasts and predictions done by analysts and cross-reference your results to understand the market. Ask local estate agents and hear their opinions, speak to friends or family who may be living in the same area, hear them out and fish for more information on what life is like in the particular area of your choice. You can also do some legwork yourself if you feel up to it. Spend time there, get to know the locals, and look around for the essential signs of a great location. You need proximity to public transport, good schools, and anything that improves the life of your potential residents once you make a purchase. Those are the cornerstones of a solid estate investment, so look around and take notes. If you have heard that a certain area is growing in popularity, you should check for new businesses opening up. Gyms, restaurants and more are all great signs of growth, as well as any new building work being done in the area.

Look Beyond the Borders of an Area

Even though it may feel comfortable to go for a property nearby, you should look for properties farther away from you to diversify your investment. Areas already doing well as buy-to-let market locations are good choices, as well as any places that will attract younger professionals looking for a place to live.

Draw Up a Realistic Budget

This may seem like a no-brainer, but many first-time investors tend to get a little carried away in their ambitions when buying Property and don’t get their budget checked and balanced before they put the money on the table. You should check the additional costs you will incur during the process and the inevitable maintenance bills coming your way. Add in the expected rental income, but remember that you may have the Property empty for periods, so you need to understand how long you can manage the payments without tenants.

Don’t Overstretch

Just because you have the means to be a landlord doesn’t mean you have to rush things. You need to be well prepared for what comes ahead before you leap. Finding the right Property is very important, not simply buying any property. Your research will play to your advantage, allowing you to make the most of what you have to work with. Buying on the high end puts you at a financial disadvantage, so you will likely need to start smaller and move on to greater properties. No matter how attractive a property looks, you must remember you are looking for investment opportunities, not a home you want to live in. Choose wisely before you make the first purchase.

©MLM Property Management

With new technology being used in most fields of business, managers have centralised their services, so you won’t have to appoint a managing agent whose office is located in the same general area of your investment property. You should ensure you have someone with experience in the property market, regardless of your Property’s location. It will help you decide whether or not you feel comfortable working with them; that way, you can analyse their level of professionalism. When you meet your potential new property manager, you should clarify which services are included in their proposal and ask questions regarding routine inspections, rent reviews, arrears and other aspects of the business. The following five questions are some of the most important ones:

Does the Agency Have a Dedicated Property Management Department?

Many agencies see property management as a weaker version of the far more glamorous field of sales, and some may even leave the management of client assets to the receptionists and front desk staff. You must ensure that your agent works in a dedicated property management department. It would be best if this department is staffed by experts, with management continuity, in case a property manager falls ill or leaves. 

Is a Director or Owner of the Agency Involved in Day-to-Day Management?

Most agencies will have a rental department and a sales department. Generally, the business owner will have a sales background and not a rental background and will often look after the sales department, leaving the rental department in the hands of a property manager. This is often the case because the sales department has a higher turnover rate and income. The rental department is more intensive and harder to manage and has a lower income. You may find that the agency where the director has a more active role in the property management department takes the property management job more seriously.

How Many Years Has the Property Manager Been Working in Real Estate?

Going to a brand-name agency doesn’t necessarily mean improving their service. This is something that relates to the property manager and not the agency. Many people start their real estate careers as receptionists and then move up to property management or the sales department. Yet, in some cases, people stay in property management as a career, and this is the type of dedicated person you want to look after your Property and your interests.

How Many Years Has the Property Manager Been with the Agency?

You need to look for stability in your chosen property manager. Due to the stresses involved in this line of work, turnover rates are high, so you want someone who has chosen property management as a career. You want to have someone who learns everything about your Property, inside and out. You want to be able to pick up the phone and speak to them now or months down the line, the same person who knows your Property as well as you do.

Does the Property Manager Give you a Written Proposal?

Some property managers will go out and look at your Property, then say that they’ve put you in their books. You should look for someone who takes the time and effort to present a professional image and gives you a written proposal instead. If they make an effort to be as professional as this, they will likely look after your Property with the same level of professionalism.

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Before you decide to hire a property management company, you must know the kinds of tasks they work on, and how they focus on things like tenant disputes and rent collection. The following points will cover the basic responsibilities of property managers:

Handle Marketing and Leasing

When you hire a management company for the first time, they will need to do an initial walkthrough of your home, something which may include recommendations on things you should update or repair to improve its chances. The recommendations are there to improve your home, making sure you can attract better tenants and reduce long vacancies. There may be a need for crucial repairs to bring the home to comply with regulations, such as smoke alarms and door locks, so keep that in mind as well.

There should be examples of the types of photos the management company may use on their website. The photos should showcase the rooms with good lighting, allowing potential tenants to explore them without setting foot inside. Property management companies must also have skills in setting the right amount of rent for the area. Good companies are running rental analyses that break down what the home must rent for and the reasons behind that.

Selecting and Screening Your Tenants

Property managers are there to also screen prospective tenants. This means they will run credit checks, background checks, rental reference checks and so forth. This helps find the best tenants for your property. Some companies will choose the best from a handful of applicants, while others go for the first available candidate that fits the bill. 

The more established management properties out there have written rental criteria when it comes to choosing tenants. This document is written down and it allows you, the owner and the tenants to see why they were chosen or not. It also decreases the chances of any claims of a Fair Housing violation if the property manager can point out the published criteria for application denial.

Collecting Rent and Handling Accounting

The management company will also be responsible for rent collection from your tenants. The companies will have a specified property accountant handling that role. They will be there to deal with the responsibilities and make sure that people are paying on time and enforce late fees if they must.

Should any tenants refuse to pay rent, then the company will be handling the eviction process as well. They will also handle the legal matters attached to that process. Once the rent is paid, they will also deduct the portion of the sum that goes to them for a management fee, the miscellaneous charges for repair fees and so forth. The remainder of the sum goes to you. Most companies will have a statement with the deposit that shows the expenses for every month.

Handling Maintenance

Property managers also handle the maintenance of all your properties. This means any initial repairs and the improvements necessary to get the property rent ready. They will have a list of trusted vendors used to handle the repair jobs. Some of those will also have a contractor's licence and may even operate their maintenance firms. They will have a process for maintenance requests in place, based on urgency. That allows them to handle things promptly and without any complications for you and the tenants.

Most of the property management firms out there have a process for tenants submitting maintenance requests, including for any potential emergencies that happen after hours. Depending on the company, those may be submitted over the phone or online through a maintenance portal.

©MLM Property Management

If you are a landlord, or perhaps are thinking of becoming one by investing in residential or commercial premises, you may be faced with the decision of whether to get a property management company to deal with the assets. 

If you own several properties, you will be hard-pressed to find time to manage everything. And when you waste time on such tasks, you are essentially wasting money as well. When you pick a property management service, you get access to professionals with a broad skill and competence to take care of your investment, all the while you enjoy its profitability. Here are some of the major benefits of working with a property management service in greater detail: 

• Keeping up with changes in legislation – oftentimes rental properties are subject to changes in legislation. This entails new and changing responsibilities of landlords towards their tenants and their properties. There is no way for you to ignore any such changes, especially if they involve safety checks, fire safety regulations and special case legislation. Failure to comply with new legislation can be very dangerous, so you need a reliable property management company to advise you on such things. Not only will they make sure you are compliant with the latest legislation, but also inform you of pending changes sometimes before they happen so you can prepare. That way you will have your properties and your tenants well-covered. 
  
  
• Collecting rent – one of the most important tasks a landlord needs to take care of is rent collection. Ideally, they will never need to deal with delays and no rent payments, but sometimes tenants tend to run into problems that lead to partial/delayed payments. Property management services can be the thing you need to ensure rent is collected every month. They can also manage disputes as they arise. Property managers act as a buffer between the landlord and the tenant, dealing with any issues along the way, without getting the landlord involved in time-consuming matters. 
  
  
• Helping you make the most of your investment – with a good property management team by your side, you can expect a lot of help. They will deal with some of the day-to-day facilities, as well as rental income requirements, ensuring that you make the most of the place as an investment. They may have valuers on the team, which will evaluate the property and guarantee you get the best possible rent for it, based on the current market situation. They can even come up with great ways to market the property and attract the right tenants, who will not cause trouble and who will stay for a longer period. All of these combined services make the aid of property management companies invaluable to landlords and they are reasons for you to consider working with such. 
  
  
• Property repairs – a lot of landlords find it very difficult to deal with all of the maintenance and repairs involved in rental properties. It is important to have the necessary skills to assess maintenance issues and deal with them before they have had a chance to escalate. A lot of property management companies work with chartered surveyors, who can advise on a lot of the maintenance and repair issues that may arise. 
  
  

Evidently, there is a lot that a property management company can do for a landlord. If you are in this role, you should do your research on a reputable company, which will provide you with good services. 

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If you own an investment property, you know that you can gain a lot of financial benefits. However, you have to be prepared to manage the said investment well, or you risk a financial loss instead. This is the main reason why many landlords prefer to put this task in the hands of professional property managers. If you are a landlord and you are still contemplating whether to do it, you only need to consider the following reasons for such a move: 

• Tenant screening – one of the major duties of property managers is to provide tenant screening. This means that they ensure the landlord gets a vetted tenant, who is much less risky than a tenant who they know nothing about. The company the property manager works for will follow an established process for vetting new tenants, assessing all risk factors involved. All of this ensures the tenants that end up in the property stay for longer and increase the landlord’s profit. Because the property manager will get important information like proof of income, references and credit history, the landlord can count on reliable tenants for their property. 
  
  
• Good understanding of property management laws – every property owner and tenant needs to be educated about various housing and safety laws. And sometimes the landlord is simply no expert on the matter. This is where the property manager comes in. They can share their knowledge on the matter and make sure that everyone understands their duties and responsibilities. 
  
  
• Dealing with maintenance and repairs – one of the major aspects of rented properties lies with the maintenance and repairs needs of the tenants. A landlord needs to be on top of any regular maintenance work, and also ensure that any emergency repairs are carried out promptly. No tenant will like it if they have no access to hot water for example. This is something that a property manager will address. They will deal with the maintenance process by working with trusted contractors. If there is a need for emergency repairs, they will be quick to respond. What is more, they will do a regular checkup on tenants and the property, to ensure any small issues are addressed before they have had a chance to turn into a major problem. 
  
  
• Routine inspections – it is important for property managers to do routine inspections of a property. The goal is to have a thorough move-out and move-in inspection process, which ensures the property is ready. More importantly, the property manager will see to it that any problems are addressed, saving the need for the landlord to get into a discussion with the tenant and avoiding conflict. 
  
  
• Evictions – if tenants break the tenancy agreement they sign, or don’t pay up their rent, the property manager will address any eviction issues. They will guide the landlord and the tenant on the legalities involved in this move. 
  
  
• Saving time – a landlord will need to deal with a lot of other work and sometimes they will have no time to deal with tenants, repairs and everything that is involved in managing a property. That is why it is very useful for them to rely on a good property manager. The latter can deal with any such tasks, leaving the landlord more time to deal with their work. Saving time means saving money! 
  
  

When it comes to getting help for their investment property, landlords can always rely on the assistance of property managers. Getting these services means saving a ton of time and effort, all the while ensuring many benefits for both the landlord and the tenant. 

© MLM Property Management