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If you are a new rental property owner, then you will probably see that being a landlord involves a lot of responsibilities. In some instances, you may feel as though you have signed up for more than you bargained for with an assured shorthold tenancy. One way for you to try and balance your workload would be for you to hire a property management company.
Now, you may be thinking, is a property management company worth it? Won’t it cut into your investment returns? The simple answer is no, purely because of the potential ROI you’ll gain by having someone who is experienced managing your active properties.
Want to find out more? Take a look below to learn about property management duties and how hiring a reputable company could help you.
Property Management Duties: What to Expect
The scope of property manager duties and responsibilities can be broad. As a general rule of thumb, for an annual fee, you can expect your property manager to:
- Assist with targeted marketing
- Conduct screening checks
- Carry out property inspections
- Handle repairs and breakdowns
- Collect rent
- Perform preventative maintenance
- Take care of tenant complaints
- Effectively handle defaulters
- And more
So, if you have been wondering what to expect from a property management company, you’ll soon see that they can provide you with a huge range of services that can positively impact your bottom line.
If you are a busy property owner or if you are trying to manage several properties by yourself, then you may not be working in the most efficient way possible. In fact, you may actually be having a detrimental impact on your bottom line.
One of the major benefits of hiring a property management service is that they can sustain your rental income using high quality renting reviews, keep your tenants happy and, most of all, ensure that you are legally compliant across the board.
Legal Responsibilities of Property Management Companies
So, what are the legal responsibilities of a property management company for assured shorthold tenancies? The truth is, there isn’t a set rule here. Some companies offer a wider scope of services when compared to others, so the legal responsibilities can vary from business to business. That being said, EPC and MEES reports are a legal requirement which some property managers, like BPS, can help you with.
EPC & MEES Reports
The Domestic Minimum Energy Efficiency Standard (MEES) Regulations have set a minimum energy efficiency level for domestic private rented properties; this means that a minimum energy efficient standard needs to be met before properties can be let.
Since 2008, all assured shorthold tenancy properties are legally required to produce an Energy Performance Certificate (EPC). If the property has an EPC rating of F or G, this is below the MEES requirements and landlords must take immediate steps to comply. This will be making improvements to increase the rating to E or register an exemption before entering a new tenancy.
Benefits of Hiring an Experienced Property Management Company
Now you have a solid understanding of how an experienced property manager could help you, it’s time to move on to the various benefits you can take advantage of when employing a company to manage your real estate.
Lower Vacancy Rate
Local knowledge is essential if you want to find the best tenants for your property. Property management companies are more than aware of how to fill vacancies by sourcing good tenants who have solid references. You can also feel confident knowing that your properties are going to be left in good condition when the tenant moves on.
Another benefit is reduced liability. You can eliminate the risk of costly discrimination cases, not to mention that you will have a team of experts ready to work with you, should you run into any issues. This can eliminate a lot of headaches and it can stop you from being sued for making a mistake that could have been avoided entirely.
You can expect to pay fewer fees when you go through a property management company as well. Any repairs will be carried out quickly, by reputable third parties who have a track record of success. Sure, you can source experts yourself, but this can be costly and it can also take a while to find someone who is available. Management companies often work with contractors regularly, so they know whom to hire and for what job.
Higher Retention Rates
If you have tenants who are always moving in and out, then this will cost you a great deal of money. Tenant retention is a huge factor that you need to consider. The longer you can keep your tenants in your properties, the more money you can make. You will also find that your investment becomes much more stable as well.
BPS: A Reliable & Professional Property Management Company
If you’re looking for a professional and reliable property management company, look no further than BPS. Get in touch with us today to arrange a free 30-minute consultation to discuss your needs.