Rental Property Management | Letting Agent Or Self Manage Your Investment Property | Buy To Let

Rental property management – should you use
a letting agent or do it yourself? Managing your own rental property can sound appealing
to some people when they first start out because they’ll know they will save on the letting
agent fees. But you should consider whats involved and be honest with yourself and then
decide whether property management is right for you. I have 3 questions that you can ask yourself
to see if you have what it takes to be an effective property manager, coming up. Hi I’m Andy Walker from where
I blog online about my journey as a property investor and landlord, sharing what works
for me and what doesn’t, to help you start or expand your property portfolio. Now it’s true, letting agents do not have
any special qualifications. Anyone can act as a letting agent. But what they do have
or should have, are these 3 key areas which you need to check and decide as to whether
you can deliver them yourself. Do You Have The Knowledge? Do you know all the steps you need to take
to comply with the law and protect your asset? For example, securing the tenants deposit
in a Deposit Protection Scheme, checking that prospective tenants are eligible under the
Right To Rent scheme if your letting in England. And you need to be aware of any certificates
and any licensing for your area depending on the type of property and number of occupants
that you will have. A good letting agent will know the answers to all these questions and
more, and they will have systems that keep them update with both national and local lettings
rules. Do You Have The Resources? For example tenancy agreements, guarantor
forms, background checks for prospective tenants and membership with professional organisations
that you can turn to for advice or if things go wrong. As soon as the tenant moves into a property,
they become the legal occupiers of that property. And you don’t want to give tenant’s that legal
right until you know that all background checks, contracts, deposits, and the first months
rent is in place. And the last question is, Do You Have The
Time? to run a rental property legally and effectively. Are you willing and do you have
the time to take and respond to phone calls from your tenants at all hours of the day
and night? And can you handle co-ordinating all the maintenance? I think lots of inexperienced landlords make
the mistake of not putting value on their time. They think they are saving money by
managing their properties themselves, but they’re not getting paid for the time that
they’re acting as a property manager they are simply just saving 5 – 12% on their income. I would like to point out that if you do use
a letting agent, you as the landlord are still responsible for the safety of your tenants,
but by employing a professional agent, you will reduce the risk of anything going wrong.
There is risk associated with any type of investment, and I like to reduce that risk
was much as I can. As a landlord, your aim is to provide an excellent
service to your customers, otherwise your customers are not going to stay for long.
If you don’t have the time, knowledge or resources to serve your tenant, you will not be providing
a good service. If you have been able to answer yes to my questions and you have a passion
for property management, then brilliant, and I wish you all the best, but if your just
starting out, I don’t want you to think that property management is easy and that
it’s a good way of cutting back on costs. Now, everything I have mentioned in this video
can be learnt. So why not take one step at a time if your just starting out on your property
investing journey? I was a landlord for over 8 years whilst I was in the Army and I used
a letting agent because I didn’t have the time to manage my properties. But I picked
things up during that time and got a feel for what was required to meet the standards.
Once I retired from the Army, I reviewed my situation and decided to continue using a
letting agent but I dropped the maintenance services. If any repairs are required, the
agent will now contact me and I will decide whether I take it on or I give it back to
them. Letting agents typically charge an administration fee for arranging any repairs or any maintenance
and issuing of any certificates so I decided to take that on and save on some of the costs. Before I finish there is one piece of good
news, and that is if you do use a letting agent, all their fees are tax deductible. If you have any questions about property management,
please leave a comment down below and if this is your first time visiting this channel definitely
subscribe so you won’t miss any of my future videos that will all be geared towards helping
you, start or improve your property business. Thank you so much for watching, please like
and share this video if you found it useful and I will see you soon. and you don’t want to give tenants ……. argh! which you need to be aware of …. no …. argh! and … huh (exhale)

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