Discover what a property management company or letting agency does and what makes a good property management company and the fees they charge. Add me on Instagram: Stephen_Duncombe
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What is a Property Management Company
Property Management Companies also known as Letting Agencies in the UK, are an organisation or person, you appoint to act as your agent to manage tenant affairs for your investment property.
Make sure to appoint only a licenced letting agent to act on your behalf
Should be a member of one of these professional organisations :
Association of Residential Letting Agents (ARLA)
National Approved Letting Scheme (NALS)
Royal Institution of Chartered Surveyors (RICS)
What Do They Do
They offer typically 3 types of services to rent out buy to let investment properties:
1. Let Only
2. Rent Collection
3. Fully Managed
What Makes A Good Property Management Company
They are will have these key capabilities:
Like aggravation (stress is not an issue)
Handle confrontation – abuse is something they can deal with
Firm but fair
Fees and Charges
Letting agents will work on a no let, no fee basis.
Can be either up to 1 months rent or a flat fee based on the entire tenancy contract amount.
Typically around 10% depending on location. Higher in London.
This is usually a monthly fee that is a percentage of the rent collected each month. Typically between the range of 15% and 17%.
Additional costs for things like inventories, rent reviews and renewals, gas safety certificates, vacant room charges and check-ins
These fees are always negotiable.
The New World
Online letting agents that might be worth a look for more experienced property investors are:
The One Thing, Gary Keller https://amzn.to/36TATYf
Essentialism, Greg McKeown https://amzn.to/2Hh7tdP
The Snowball, Warren Buffet https://amzn.to/38U3YW5
Start with Shy, Simon Sinek https://amzn.to/3lMCcOS
The Lean Startup, Eric Ries https://amzn.to/3nCghue
The Intelligent Investor, Benjamin Graham https://amzn.to/36O6ri9
The 7 Habits of Highly Effective People, Stephen Covey https://amzn.to/2UEYUfJ