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London Lettings: Should You Self-Manage Your Property?

Written by Posted On Wednesday, 29 November 2017 07:18
London Lettings: Should You Self-Manage Your Property?

A question faced by all new property investors, but a particularly pertinent one for the competitive market of the capital. While daily, hands-on management suits the temperament of some, the knowledge that landlord duties can be passed to more competent hands is a relief for many others.

Of course, not all property owners have a choice. Many London investors live overseas or frequently travel out of the country, so the only logical solution is to hire a professional company to handle management in their stead. However, if you live locally and are hoping to maximise your investment, it might seem tempting to take on the responsibility yourself. If you’re not sure which is the best option for your property or lifestyle, read on to help you decide.

 

PREPARING THE FLAT

It’s likely that your property will need a little bit of work before it’s ready to let, whether that’s a lick of paint or complete re-fit. Particularly in London, where the rental market is virtually uncapped, a few simple improvements is often the easiest way to increase your monthly income by a few hundred pounds.

This system does have limits though, and only by fully understanding your local market can you determine which improvements with provide the greatest return on investment. For example, a flat in Camden will appeal to have tenants with very different priorities than those seeking a home in Enfield. Choosing a dedicated lettings firm, like Peter Barry Estate Agents, who focus on property management in North London, is that they will have an excellent current knowledge of similar properties in your area, and be able to tell you which features should be improved first.

Additionally, they will be able to inform you about any changes to the property that are legally required, such as smoke detectors, electric wiring or boiler upgrades.

 

CHOOSING TENANTS

In an ideal world, every tenant would make being a landlord easy and stress-free. Unfortunately, those well-meaning professional couples that don’t like pets, love gardening and have no intention of ever buying a house are few and far between.

Meeting and selecting tenants yourself is one way to make sure that you’re comfortable with the people living in your property, but there is a lot more to responsible renters than having a pleasant disposition. To protect your investment, it’s wise to carry out background checks, obtain references from previous landlords and confirm a tenant’s ability to pay rent on time.

While a professional agency might not choose the “perfect” people to live in your flat, all of the hassle attached to choosing between renters becomes their problem, and all you need to worry about is the direct debit landing in your account every month.

 

PAPERWORK

While your investment may be in bricks and mortar, don’t forget the sheer amount of paperwork that goes alongside it. The legal documentation required for any tenancy agreement is extensive, inescapable, and requires a meticulous hand to complete. If you decide to self-manage your property then be aware that filling out tax returns and going through tenancy agreement terms with a fine-toothed comb is part of the package.

For those that don’t have the time or patience to deal with the tedium of contracts and deposit schemes, a Property Management Agent is the best person to do this for you.

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INVENTORY

Talking of which, taking inventory is one of those tasks that nobody seems to be quite sure about. How much detail should you include? Do you have to make not of every little scratch and mark? Finding the balance can be a tedious task, and inventory completed by self-managers tend to be overwhelmingly comprehensive or so light that they have little purpose at all.

Unless you are familiar with inventory lists already, then leaving these to an agent can take a huge weight off of your shoulders. Not only will they already have an effective template to use, but will know from experience which parts of your property are most likely to suffer wear and tear, and which will need less attention.

  

REPAIRS AND MAINTENANCE

If you’re comfortable with odd-jobs and DIY (or can get discounted rates from someone who is) then keeping your property in good working order won’t trouble you. However, the flip-side of this is that when the boiler breaks down at 4am in your property four zones away, it will be your responsibility to answer the call.

A management company will cost you slightly more that your mate with a toolkit, but you won’t need to hear about every faulty plug and blocked drain as they happen. While minor works and emergencies will be taken care of on your behalf, you will of course be consulted before major works are carried out.

 

PEACE OF MIND

Ultimately, choosing whether to self-manage your property or leave it in the hands of a professional boils down to what you want out of your investment.

Maybe you like the idea of having an ongoing project and being involved at every stage. In which case, with a little patience and flexibility, there is no reason why you cannot self-manage your property. If you don’t have much spare time and simply want to make the most out of your London property, then a dedicated management company is probably the most stress-free way to let your home.

 

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Julia Adair

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