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A downside of working with a property management company is that it can be expensive but its pros include valuable peace of mind, a great deal of time saved and boosted rental prospects.

Here we dive deeper into the various pros and cons of working with a property management company so you can decide if it is a worthwhile investment.

What does a property manager do?

Property management companies take responsibility for rental properties, managing the day-to-day rental operations so that the owner does not have to. Their duties vary but could include: 

  • Finding tenants for your property
  • Tenant screening
  • Rent collection
  • Property maintenance and repairs
  • Managing the financial and legal side of things
  • Conducting regular property inspections
  • Compliance with new laws
  • Short-term let or Airbnb management

What are the pros of working with a property management company?

There are many benefits to working with a property management company including greater peace of mind, more free time and ensuring that the property is well looked after.

Knowledge and experience

One of the main pros of working with a property management company is their experience in the industry. Companies like J Property Management boast years of experience and specialist knowledge.

As a result, they understand the local market and know how to price rent to help you always have tenants and yield the best profit. From setting the right price to marketing your property correctly, property management companies can help you maximise your rental income.

Being a landlord involves many different duties – some which you may not have even expected. Property management companies in London have seen it all, so they’re well-equipped to handle any issues that may arise. They’re in the best position to help you make well-informed decisions regarding your property and avoid making costly mistakes.

Save time and stress

A huge benefit of working with a property management company is how much time it could save you. Managing a rental property can soon take up all your time, especially if you are trying to manage more than one property. Delegating this responsibility to a property management company means you can focus on the rest of your commitments or hobbies.

Whether it’s collecting rent, organising repairs or screening tenants, there are many different time-consuming tasks involved with being a landlord.

By offloading some or all of these tasks, you can enjoy the benefits of being a landlord without the stress or wasted time.

If you don’t live locally to the property, it can also save you a huge amount of time and stress having a property management who can handle the day-to-day operations of your property or properties.

These companies work with local professionals to deal with maintenance requests efficiently. Rather than having to travel there every time or coordinating property issues from afar, working with a property management company ensures that issues can be dealt with quickly and professionally – with you not having to go anywhere or call anybody.

Getting the right tenants

Tenant sourcing can be more complicated than it seems – finding tenants who are going to look after your property and pay rent reliably. Without professional experience, it can be easy to choose the wrong tenant which could end up costing you in time and money in the long run. 

Property management companies can take responsibility for this. They will take the time-consuming task of screening all potential tenants of your hands, using a range of tools to ensure you end up with tenants who will respect your property and pay on time each month. If needed, they can handle any security deposits or insurance policies to protect both you and your tenants.

By handling tenant screening professionals, property management companies also ensure that your property remains occupied so that it is not sitting there empty and losing money. They know how to make the property appealing for tenants and sell it at the right price to guarantee interest.

Keeping the landlord protected

When working with a property management company, you are protecting yourself both financially and legally. They have experience with lease agreements and all the procedures that come with renting a property. It is also their responsibility to stay up-to-date with all local property laws and regulations to ensure landlord compliance.

As a landlord, it can be difficult to keep on top of everything when it comes to following specific housing laws and legal requirements. They can also act as a mediator between the landlord and the tenants, avoiding the need for difficult or awkward conversations. Having a property management company in your corner can help you avoid costly legal issues and make sure you are well protected as a property owner.

For expert property management in London, get in touch with J Property Management today at 020 3105 5898.

What are the downsides of working with a property management company?

Like anything, working with a property management company comes with a couple of disadvantages.

Cost

Working with a property management company doesn’t come for free. These businesses usually charge a percentage of the rental income as their fee which can range from 10% to 15%, depending on the services provided. If you have bought your property as an investment opportunity, this fee can make a dent in your profit.

As with any investment decision, before deciding to work with a property management company, you should think about how much profit you might lose and what you will gain in return. When considering all the time and stress you could save, it may work out as a cost-effective solution.

If you want to find out more, see our guide around: How much does property management cost in London?

Lack of control

When you hire a property management company, they take responsibility for the day-to-day operations of the property. This means that the landlord can sit back and relax, trusting that everything is being handled. However, some landlords may be looking for more involvement. In some cases, landlords may want more control over their property, such as for pricing, maintenance and marketing. 

Property managers are well-equipped to handle any issues that may arise which is why they will not bother involving the landlord. If you are a landlord who would prefer to be more hands-on for certain aspects of the rental process, you may prefer to only outsource certain tasks.

Working with a property management company: is it worth it?

Ultimately, hiring a property management company can help you enjoy the perks of being a landlord without any of the stress or time commitment.

If you would prefer to take a more hands-off approach and know that your property is in good hands, working with a property management company could be a wise decision. For landlords looking to be more involved in the process and not spend money, it might be better to manage the property yourself.

Want to learn more about working with a property management company? Get in touch with Jessica or Reka at J Property Management today at info@www.jpropertymanagement.co.uk

Jessica Hall

Author Jessica Hall

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