27^th July 2023

The advantages of using a letting agent/property management company

Letting out a property for rent and the ongoing associated management of both the property and the tenancy can be a full-time job that demands expertise, dedication, legal knowledge and a willingness to be on call 24/7.

For many investors or rental property owners, it’s a role that they simply can’t fulfil due to their other full time commitments or responsibilities. Equally, without the required knowledge and understanding of a landlord’s obligations many lack the skills to be able to effectively manage their rental whilst keeping themselves fully compliant. This is where a property management company comes in. Engaging the services of a good property management company can reduce stress and headaches and can maximise the potential of any rental property asset.

First and foremost, a good property management company will help optimise rents. With their experience of the local market and knowledge of comparable rents, they are best suited to determine the most suitable rent level for your property. Their understanding of market trends and demands will ensure you are getting the most out of your investment. A good property management company will also efficiently collect and handle rent payments and will have effective strategies to ensure rents are paid on time. This ensures a steady cashflow for landlords to help with maintaining and improving the property.

Reducing voids and unoccupied periods is another significant advantage, as good agents excel at marketing properties to fill them more quickly with correctly matched tenants. Often an agent’s experience is as valuable as any formal referencing process in ensuring a supply of quality tenants, which in turn leads to more reliable rent payment and greater respect for the property.

Turning to tenant management, this is an area where landlords often struggle to maintain an objective and professional relationship when managing their property themselves. A good property management company effectively screens prospective tenants with a range of referencing tools, which helps to reduce issues or legal problems down the line. A good agent knows how to keep tenants happy whilst remaining objective, leading to better tenant retention and lower turnover rates.

The letting and management of rental properties presents a legal minefield with around 170 separate pieces of legislation or regulation to be met. Good management companies keep themselves fully abreast of the ever-changing regulatory framework and are able to ensure landlords maintain their compliance with the minimum of stress or effort. This is particularly critical where a landlord needs to regain possession of a property as the need to evidence compliance cannot be underestimated in any legal process.

A good property management company will also have access to quality trades staff, enabling them to carry out repairs and improvements promptly and effectively. They will also provide tenants with access to services ‘out of hours’ so that genuine emergencies can be readily resolved in a timely way. Their systems are also geared to ensure that regular compliance tasks are undertaken on time and are not forgotten.

One last benefit of using a good property management company that cannot be underestimated is the stress reduction factor. Knowing that professionals are taking care of your property, dealing with your tenant’s issues, ensuring legal compliance and keeping on top of maintenance can all bring peace of mind.

As Andrew Ward, owner of Award Property Management, says, ‘using a good property management company isn't just about outsourcing tasks, it's about fostering a long-term professional relationship that provides the best return for any property investment. For any landlord short of time or for those who are unsure about the ever-changing regulatory landscape, then appointing a good-quality agent brings added value whilst avoiding the potential pitfalls of attempting self management.'

Award Property Management are award-winning estate and letting agents in Cambridge. If you’re a landlord looking for an attentive and reliable agent for your rental portfolio, please contact us.