There is a lot to think about when managing your own property and the penalties for forgetting crucial parts of the process can be steep.
As with many things, being organised is essential. Whether you are intending to hire a property management company like London Shared, or looking for property management tips so you can do the job yourself, here are some things you should consider.
1. Is your property fit for rental?
It is essential that all landlords ensure their property is safe for tenants. A well-maintained property is much easier to let.
Have a look around your property and ask yourself, would you feel comfortable living in it? If not, why? Attend to matters that could be seen as safety issues such as:
- Smoke alarms and CO detectors issues
- Checking all electrical installations to ensure they are safe and not leaking
- Ensuring you give your tenants a gas safety certificate
HMO properties are subject to stricter safety requirements, and if you are applying for a landlord licence, you will need to show you have ticked all the boxes.
The Homes Act highlights the above in more detail.
2. Attracting tenants
Once your property is fit for purpose, the next crucial step is filling it with tenants. Using online platforms are the most efficient ways of reaching a larger audience than your more traditional flyers or notice boards.
Attract tenants online by ensuring the following:
1. Only use high quality images of your property, preferably not taken on your smartphone. Include images of the important spaces such as bedrooms, kitchen and communal living areas.
2. Select a competitive rental amount per month from conducting thorough research in the surrounding area
3. Provide potential tenants with the highlights or stand out features of the property in the description
4. Utilise digital platforms to increase your reach such as social media and the various property portals
3. Tenant screening
It is easy to put any tenant in your property but much harder to remove a bad tenant. Set up an initial call to conduct some general pre-screening questions. If they make it pass this screening round, the following next steps are advisable:
- Have them complete a rental application form (which includes information such as employment, financial and personal)
- Conduct a credit check
- Conduct a background check
- Reach out to references
4. Rent collection
One of the most important property management tasks is rent collection. Ensure that a clear process is set out and followed from the beginning. If you are not clear on this, you may find your tenant(s) are constantly late or the money is paid to you in multiple payments over the course of the rent period.
Many professional property managers such as London Shared use direct debit to manage rent payments. This is the best form of payment as the control is with the property manager. At the beginning of the tenancy, the tenant signs an authority so the rent can be debited from the tenant(s) account on the day it is due.
5. Availability and time
You need to ensure that you are always readily accessible and have the time to deal with situations when they arise.
Things like yearly inspections, repairs and maintenance need to be factored in and can be costly if you are working full-time or are on holiday when a property needs urgent maintenance work.