How to Manage Your Investment Property

Should I Manage My First Rental Property? 

Whether or not you should manage your own rental property depends on several factors, and it’s worth exploring some of the pros and cons of this option to help you decide. 

Pros of Self-Managing an Investment Property 

• Managing rental properties can be fulfilling to those who want to fully immerse themselves in the property world. 
• If your goal is to become a landlord, managing your property will help you understand the ropes and prepare you for growing a portfolio. 
• You can keep costs down if you self manage your property rather than hiring a management company to do it for you. 

Cons of Self-Managing an Investment Property 

• If you don’t manage your property yourself, you will need to hire a property manager to do it for you, which incurs an extra cost. 
• If you want to become a full-time property investor/landlord one day, you’ll miss out on the hands-on experience that comes with managing a rental property. 
• You could have less control over your rental property and who lives in it.

How to Manage Your Own Investment Property 

If you decide that you want to manage your own rental property, make sure you’re aware of what’s involved and know what to expect. 

Here are some top tips to help you manage your investment property as successfully as possible. 

Stay on Top of Rental Property Finances 

When you own a rental property, your primary income comes from regular rental payments from your tenants. 

To manage this side of your investment, you need to make sure that your tenants pay rent and that they’re keeping on top of rental payments each month. 

You also need to factor in things like rental income tax and ensure you stay on top of your financial commitments. 

Keep Up With Rental Property Maintenance 

If you already own a home, you will know how often inconvenient repairs and maintenance tasks can crop up. 

When you own a rental property, you must respond to any issues your tenant is having, which could involve matters within the property. 

Anything that can impact your tenants’ stay within your property will need to be repaired, and you will need to respond to this promptly. 

This is one of the elements of managing a rental property yourself that can require a lot of extra time and attention. 

Keep Your Tenants Happy

One of the best things you can do as a property investor that owns rental properties is to make your property as appealing as possible to tenants. 

This can be done through decor in the property or the property itself and its location. However, you also need to think about the kind of experience each of your tenants has within your property. 

If tenants have a bad time living in your property due to things like poor communication, they’ll be less likely to become long term tenants and will be unlikely to recommend your rental to friends and family when they move out. 

High tenant turnover and void periods is the last thing you’ll want as an investor, so keeping your tenants happy is a crucial part of managing an investment property. 

Make Sure You’re Aware of Rules and Regulations 

A landlord and property owner must abide by different rules and regulations when renting out a property. 

The key things to consider include: 

• You must keep your property safe for your tenants and free from health hazards. 
• You must provide an Energy Performance Certificate for the property. 
• You need to make sure all gas and electrical equipment is safely installed and maintained. 
• You must keep your tenant’s deposit protected in a government-approved scheme. 
• You must ensure your tenant has the right to rent (for rental properties in England). 
• You need to be clued up on the eviction process for tenants. 

To meet all of the rules and legal obligations required of you, it’s essential to properly read up on everything you need to know. 

Not meeting some aspects of your landlord requirements, such as performing regular gas safety checks, is a serious criminal offence. 

Read about the latest changes to rules and regulations in rental properties for 2021. 

Who Can Manage Your Investment Property on Your Behalf? 

If you decide that you’re not prepared to manage an investment property yourself, you could consider enlisting the help of a property management company. 

There are some great rental property management companies in the UK to choose from, but is hiring a property manager right for you?  

Let’s look at what exactly a property management company is and the pros and cons of using them to manage rental properties. 

What Is a Property Management Company? 

A property management company is a company that manages rental properties on behalf of the investor who owns them. Property owners will pay property managers to carry out duties such as finding tenants, overseeing the property and its condition/upkeep, and collecting rent payments. 

Benefits of Property Management Companies 

There are many benefits to having a property management company look after the management side of your rental property investment. These are: 

• Property managers have experience with every aspect of running a rental property, including the legal side of this venture. This makes hiring a rental management company extremely helpful for investors who aren’t clued up on the legalities of managing a rental property. 
• Investors don’t have to worry about finding a great tenant or dealing with potential renters issues and tenant complaints, which makes the process of owning a rental property much less time-consuming. 
• Property managers know the rental market well and can price your property at the best possible rate. They’ll also collect rent on your behalf and ensure rent is paid on time. 
• With all of the aspects of managing a property taken care of, investors are left with more free time to focus on their day-job and other daily life commitments while making passive income. 

Disadvantages of Property Management Companies 

While there are some major benefits to property management companies, there are also some aspects that many investors view as a downside. Here are the most common: 

• Property management fees mean that investors have an extra outgoing payment every month on top of other costs like taxes, mortgage payments, and general maintenance costs. This can make hiring rental management companies off-putting for some investors. 
• Investors who don’t manage their investment property themselves have less control over the property. This can be detrimental to investors who want to be more hands-on with their investments. 

How to Find a Good Property Management Company 

Wondering what are the best rental property management companies to help you with your rental property?  

To find a good property manager, here are some key tips to keep in mind. 

Do Your Due Diligence 

Due diligence is essential during every step of the investment process when buying a rental property. This includes finding a property manager as much as it does finding a good property development company. 

Research potential property management companies in detail, and look for companies with a lot of experience and positive reviews. 

Choose the Right Company For Your Property 

Certain rental management companies will have experience dealing with specific property types. For instance, some companies may specialise in managing rentals for student flats while others specialise in residential properties. 

It’s a good idea to look for companies that align with your particular rental property purchase so that you know that your property, and your tenants, are in the best hands.