How Should I Manage My Property?

Many people are searching for that business venture that carries little risk and can guarantee an income. With unemployment on the rise, people are looking towards self employment as it can give them greater control over their income. One example of self-employment which has proven to be particularly successful is renting property. In the present economic climate when individuals are struggling to save deposits and have mortgage applications approved, renting a house has never been more appealing and the interest in properties to rent is on the rise. Once the decision is taken to rent property as a source of income, the key decision that remains to be made is should the landlord manage the property himself or work with a letting agent to manage the property on his behalf?

Many people are trying to find that business venture that carries little risk and will guarantee a return. With an ever increasing surge in unemployment it is currently particularly appealing to be self-employed to gain that personal control over your earnings. One example of self-employment which has proved to be particularly successful is renting property. In the current financial state when individuals are struggling to save deposits and have mortgage applications approved, renting a property has never been more appealing and the interest in properties to rent is on the increase. After the decision is taken to rent property as a source of income, the key decision that remains to be made is should the landlord manage the property himself or work with a letting agent to manage the property on his behalf?

Which option a landlord chooses will usually be dependent on their personal circumstances and if they possess the knowledge and time to do the job. If a landlord has other business interests and the rental property is purely a secondary income, it could be advisable to select a letting agent to look after the management of the property this can remove the need for the landlord to become involved in the everyday aspects of property rental. For a landlord who has a particular interest in business and has the time and resource, then the option for self management can be an appealing one.

However there are a number of risks associated with self management. Points to consider include:

Are you currently up to date with current legislation?

How are you registering deposits?

Landlords should routinely inspect their property, but how often?

How can you ensure your tenants are paying their utility and council tax bills?

Are you prepared to deal with a crisis if the tenant calls you during the night?

You will also need to remember to renew the annual gas certificate.

Do you know reputable contractors you could have confidence in to carry out any necessary work?

Do you have the right amount of insurance cover?

How will you handle potential conflicts and disputes with tenants?

Are you going to know what action you are able to take if your rent isn't paid?

Of course by using a letting agent the landlord forfeits a proportion of the rent from the tenants as agreed with the letting agent. For this fee the letting agent will manage the retrieval of the deposits when new tenants arrive and the return of deposits on their departure. A letting agent will also have the resources to advertise your property to ensure that you find tenants in the shortest period of time. It is in the letting agent's best interest to make sure that the property is occupied with reputable tenants.

Additionally, many tenants now ask if the agent or landlord is managing the property after which decide to view only those properties which are managed, because they think they will be looked after better. Plus, rents achieved on Managed properties are often higher than for Tenant Finds, plus tenants are invariably found quicker saving cash by reducing void periods.

Many landlords prefer to work with a letting agent to manage their rental property because it removes much of the administration and as the letting agent's fees are only a proportion from the rent they may not be as costly as you think.

This article was written by R Deans on behalf of Belvoir Sheffield, Belvoir are the leading letting agents Sheffield [http://belvoirsheffield.co.uk/] specialsing in property management sheffield [http://belvoirsheffield.co.uk/landlords]. For more information, please visit belvoirsheffield.co.uk