If you are still self-managing your property/properties yourself, you are likely be asking a pertinent question. Is it worth carrying on or is it time to consider the benefits of a fully managed service?
We completely understand. As landlords, you face some of the biggest changes in the private rented sector for more than 30 years. It’s daunting and time-consuming and the penalties for non-compliance mean that you can’t afford mistakes. It’s not surprising you might be considering passing on the responsibility to someone you trust.
If you are trying to decide whether to carry on down the route of self-management or to opt for a fully managed service, let us help you to understand some of the new responsibilities that you face.
Changing tenancy structures and eviction processes
Unsurprisingly, the biggest changes are within the Renters’ Rights Bill, which we have covered extensively on our blogs. Tenancy structures and the process of eviction will change, with the aim of encouraging tenants to stay longer.
This should mean having to look for new tenants less often. However, it does require more effort in screening effectively in the first place with a thorough referencing process, as well as building long-term tenant relationships to ensure that all parties are happy and communicating well. Eviction processes will also be invalid if you have missed certain processes, such as protecting a tenant’s deposit, so paperwork is vital.
Registering on the private rented sector database
Evictions will also be invalidated if you haven’t registered your details on the new private rented sector database, which must be kept up to date, and which is yet another administrative task that you may want to pass on.
Managing rent reviews
Amendments to the process of rent setting and rent reviews will also be challenging. Rents will be set at the time of marketing a property and you won’t be able to solicit or accept any higher offers. With rent increases limited to once a year, with two months’ notice, it will be important to set the correct rent in line with the rest of the market at the outset.
An agent working on your behalf already has a comprehensive knowledge of the local market and can help provide the evidence you need to justify a rent increase, particularly if a tenant challenges it at a first-tier tribunal.
Avoiding penalties
In a time of increased costs, you are also likely to have one thing on your mind – protecting your rental income. Non-compliance can cost thousands in fines and could also damage your reputation.
At Proctors, we offer three levels of service to landlords. They include letting, letting and rent collection and our full letting and management service where we take over the day-to-day management of your rental property, undertaking everything from managing rent collection to chasing arrears. If you feel now is the time to hand over the management of your property don’t hesitate to get in touch.
Proctors is an independent network of individual estate agent businesses with branches in Beckenham, Bromley, Park Langley, Petts Wood, Shirley and West Wickham. We’ve been buying, selling and letting in these areas since 1946. Get in touch to find out how we can help you with your property requirements.