Given upcoming changes in lettings legislation, landlords are increasingly reconsidering how they manage their rental properties.
A recent survey conducted by Uswitch in the UK revealed that nearly two-thirds of landlords are contemplating a switch to a managed let. The main reasons cited for this change include:
1. Avoiding the hassle of dealing with repairs (32%).
2. Eliminating the need to find tenants (30%).
3. Managing legal requirements (30%).
4. Insufficient knowledge of the rental market (29%).
In this guide, we'll delve into what a managed let involves, how it operates, and the benefits of entrusting the day-to-day management of your property to professionals.
Property management services explained
Property management services are designed to help landlords to look after their rental properties. These typically include:
This service involves marketing the property, conducting viewings, tenant qualification and reference checks, and the preparation of up-to-date tenancy agreements.
It often includes taking inventory at the beginning and end of a tenancy, as well as collecting the first month's rent and a security deposit, which is legally required to be protected in a government-licensed scheme. Some agents may also handle utility-related matters.
Rent collection encompasses all the services offered in the tenant-find package, along with additional responsibilities like collecting rental payments from tenants and ensuring they are deposited into the landlord's bank account.
The service also includes chasing missed payments, conducting rental reviews, and managing tenancy renewals and changes.
Fully managed let
A fully managed letting service includes everything mentioned so far, along with legal protection and most repairs and maintenance. This option alleviates the burden of dealing with property repairs, which was a top reason for landlords considering a switch to a letting agent.
Property maintenance can be time-consuming and costly, with repairs and maintenance consuming a significant portion of landlords' income.
Premium managed lets
Some agents offer a premium managed letting service that goes beyond the standard managed let. This service not only guarantees rental income, even during void periods, but also takes full responsibility for all aspects of the rental, enforces and safeguards legal rights, and offers legal protection in case of disputes.
Landlords considering a switch to a managed let are driven by the need to stay compliant with evolving lettings legislation and their limited knowledge of the rental market. Therefore, it's essential to work with a trusted letting agent who is well-versed in these areas and can provide the necessary support and expertise.
Many agents offer comprehensive training and access to market data to ensure landlords get the most out of their rental properties.
For more information on managed letting services, reach out to your local branch.