Buying a property can lead you down one of two roads. One can be employing a professional lettings company to handle everything for you. The other is becoming a landlord yourself, and this comes with lots of responsibilities. These can consume your life, and before you know it, you’re overwhelmed with a matter of issues relating to your property.
In this article, I will explain why it isn’t necessarily preferable to be a Buy to Let landlord. It’s not a decision to be taken lightly becoming a landlord simply because it’s so time consuming. Here are the reasons why…
Lots of DIY needed
Most property investors live busy work lives (after all they must have secured the money to invest from somewhere!) Chances are, they don’t have the time, effort and means to buy a property and spend several months and thousands of pounds refurbishing it to sell back on.
Repairs and maintenance issues are another problem, particularly if you’re not based near the property you’ve bought. A tenant reporting on a faulty tap or broken washer is something that is best left to the professionals. A reputable managing company removes all the hassle you would have in dealing with problems of this nature.
Letting out your property
Finding a tenant for your property can be easy because of the huge demand for property felt nationwide, but what you don’t want to occupy your property is the tenant from hell. Argumentative, loud tenants who don’t pay rent on time is what every landlord wants to avoid, so a proper and extensive vetting process needs to happen if you want a good tenant that causes no problems.
This search is any experienced lettings companies’ bread and butter. They deal with letting out hundreds of properties on behalf of landlords and using them is preferable to dealing with everything yourself, particularly if you are not inclined to do so.
A void period is the space of time your property is unoccupied due to your tenant leaving. This is what you may have to deal with at some point when owning a property and most investors factor this into their cashflow before they even decide to invest.
If you’ve bought under a guarantee you will earn a set amount of rent every month (guaranteed by the developer/managing company) then you don’t need to concern yourself with the possibility of void periods. You will still earn your assured rent without question- this clause will be written into the contract before purchase so it’s a legal obligation. One potentially major hassle is removed by using a lettings company.
Limits your purchase to your local area
If you decide to be a landlord and take on all the responsibilities that come with it, you will likely need to be near your property in order to manage it. This limits your money-making investment to your local area only. Chances are, property just around the corner from your house isn’t the most ideal location to invest.
By employing a lettings company, you can broaden your search to invest anywhere in the country and identify the best Buy to Let hotspots regardless of how far you are from there. After all, the lettings company you’ve employed will manage everything, so you barely have to even view your property, if at all.
Dealing with rent collection/increases
Having a good tenant eases much of the stress involved with managing a property but even the best tenant can delay or miss a rent payment. Chasing up rents is not what any landlord wants to spend time out of their day doing.
A professional lettings company has likely guaranteed you your rent every month, so in the unlikely event your tenant misses the rent, your money will come out of the managing companies back pocket instead. Because of this, the company will chase the rent due up heavily because they don’t want to lose money on the deal- it’s in their interests to do so because they profit from your property as well as you.
Let’s face it- most of us aren’t legal experts when it comes to buying property. With more and more government regulations with regards to property law being implemented, a greater knowledge of said matters is important.
A trusted lettings agency will abide by the law and keep on top of new rules and regulations affecting your property. For example, if you try to evict a tenant but are unwittingly breaking regulations in doing so, you could be stuck with a cashflow problems for months and potentially face fines. Leave all this in the hands of the professionals whilst being kept abreast of any issues with your property.
Ultimately, many investors decide they have better things to do with their time than managing their own properties. The more time you save by hiring investment property managers to do all of the day-to-day work, the more time you have available to research the best places to invest in UK property. It means you invest better and make more money. It’s this profit which more than pays for your properties to be managed by the professionals.
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