Fortess Homes Estate Agent offer valuable insights for landlords considering property management services. Whether you're a seasoned investor or a first-time landlord, this guide will help you make an informed decision regarding the management of your rental property.
Q: Is Property Management Necessary for Landlords?
A: With over 150 laws regulating rental properties, staying on top of your responsibilities as a landlord has never been more critical. Mistakes can lead to hefty fines, and being a "hands-off" landlord in today’s heavily regulated world is neither simple nor risk-free.
A good property management service can help you avoid potential legal issues by handling compliance requirements. For instance, if an emergency repair is needed, a managing agent will quickly arrange for professional help. Even while you're on holiday, you can rest assured that the agent will communicate with tenants and manage all the paperwork.
Is a Managing Agent Essential?
Some online platforms may suggest that property management is unnecessary. These platforms often offer fixed-fee services that stop after finding a tenant and collecting rent, leaving landlords and tenants to deal with everything else.
However, the idea of handling everything on your own is becoming less practical. These online agencies, which don’t provide ongoing management services, are often driven by the fact that if they did offer them, their costs would rise considerably.
While it’s true that repair costs are the landlord’s responsibility regardless of whether you have a managing agent, comparing the expense of property management to unnecessary insurance is misleading. Both management costs and repairs can be deducted from rental income for tax purposes, so even though you may pay upfront, these expenses are often credited back during tax filings.
Managing Agent vs. DIY Management
Issues such as late rent payments, property damage, unauthorized subletting, or unapproved pets can arise during a tenancy. Without an agent conducting regular inspections and keeping track of tenant behavior, the risks and stress increase for landlords. Relying solely on a low-cost online agent won’t provide much support if things go wrong.
In contrast, a property management company can offer comprehensive support. Their knowledge, expertise, and network of professionals can ensure issues are dealt with promptly, keeping your tenants happy and protecting your investment. Best of all, you’ll have access to a real person when you need help, unlike the impersonal service of many online platforms.
Benefits for Tenants
For tenants, property management services also provide peace of mind. From deposit protection and dispute resolution to having a dedicated point of contact when things go wrong, tenants benefit from a higher level of service and security when a managing agent is involved.
