Section 1: The basics of property management
Having an efficient property management team and process is key to a successful letting agency business. Landlords are won, upsold and lost based on how well their properties are managed, making this a key component in increasing revenue, justifying management fees, and ensuring your agency beats the competition to work with landlords.
What is property management and why does it matter?
Property management is, as the name would suggest, the managing of any property, whether it’s owned by yourself or by someone else. Residential letting agents are responsible for managing a portfolio of properties on behalf of their landlords. This means that, depending on the type of service offered, they can be responsible for advertising the property as available for rent, finding the tenants to live in the property, ensuring any deposits and checks are taken before the tenant moves in, collecting rent, liaising with the landlord, and managing maintenance. That’s a lot! Along with all this, there is a minefield of regulation around managing a property, which is why a landlord will often instruct a letting agent to do this on their behalf.
This gives an insight into why a trustworthy property management service is so important. The property management services you offer can be the reason a landlord chooses your business over a competitor. The better you are at managing your clients’ properties, the more instructions you’ll win, and the more successful your business will be as a result.
What property management services do agents typically offer?
Most letting agents offer two types of property management to their landlords: let only and fully managed.
In a let only service, the agent only finds and places tenants on behalf of the landlord. The agent is usually responsible for the marketing of the property, carrying out viewings, reference checks, the move-in process, and the collection of rent and deposit money.
All other aspects of the management of the property fall under the remit of the landlord. The landlord is responsible for dealing with repairs and maintenance issues, safety checks, and the move-out process.
Most agents charge for a let only service via a one-off payment at the beginning of the tenancy, making it a more cost-effective solution for a landlord, though one that offers fewer services.
A let only service can offer risks for landlords depending on their knowledge of property legislation and their responsibilities. For this reason it may be less attractive to accidental and non-professional landlords.
A fully managed service, on the other hand, is one in which the letting agent carries out all aspects of property management on behalf of the landlord. This includes everything listed above, with the letting agent being the point of contact for all maintenance issues.
A fully managed service is more time-consuming in comparison to a let only one, allowing a letting agent to charge a higher fee, and one that is recurring, rather than a one-off payment.
Most agents attempt to upsell their landlords from a let only service to a fully managed one —whilst the manpower and time spent on a fully managed property is greater than a let only one, it is a more profitable service for an agency.
Different types of landlords
Landlords can come in many shapes and forms. Some landlords are ‘accidental’ landlords, where they may have inherited a property or moved in with a partner, and therefore, have a property they wish you to rent out. Others are ‘portfolio’ landlords, who have specifically purchased properties in order to rent them out. This is known as buy-to-let. You may even be managing properties on behalf of a developer, known as a build-to-rent provider, who has a large block of flats with rented units within.
As you can imagine, each of these landlords is likely to have different requirements and expectations, so it’s important to factor these in here. Some landlords may expect regular catch-ups and reports from you, whereas some may be a lot more hands-off.
Section 2: Rental ready: Ensure your property is safe and compliant
Ensuring your property is safe and properly licensed helps you put your best foot forward at the beginning of a new tenancy, but staying compliant with HHSRS and property licensing requirements is easier said than done. That’s why we’ve put all the essential information you need to nail pre-tenancy together in one place. Ready for a hassle-free tenant experience? Read on.
Property inventory checklist
First things first, you need to make sure your property is fit for purpose. Doing an inventory check after the previous tenant leaves helps to give a clear picture of what work may need to be done on the property. This is also helpful information for your prospective next tenant, giving them a good idea of what the property provides and if it comes furnished or unfurnished (meaning no unpleasant surprises for anyone involved!).
