propertymanagement

Do you ever wish there were more hours in the day to handle all the tasks that come with being a property owner? You're not alone. Owning property can be incredibly rewarding but comes with its fair share of challenges. Fortunately, there's a solution that can lighten your load and bring some order to the chaos: property management companies. In this article, we'll explore how these unsung heroes of the real estate world can transform your property ownership experience, providing efficient solutions that give you back your time, save you money, and let you breathe a little easier. Whether you're a seasoned landlord or a first-time property investor, get ready to discover how property management companies can be your secret weapon in the battle against property management woes.

The Need for Efficient Solutions

Let's face it: being a property owner can sometimes feel like a never-ending game of whack-a-mole. When you think you've got everything under control, another issue that demands your attention pops up. Here are some of the common challenges property owners face:

A. Managing Time-Consuming Tasks

Property ownership isn't just about collecting rent cheques and counting your profits. It involves a whole host of tasks, from finding and screening tenants to handling maintenance requests and keeping up with legal requirements. These tasks can eat up your time faster than you can say "property management."

B. Handling Tenant Management

Dealing with tenants can be like navigating a minefield. From screening potential renters to handling disputes and evictions, managing tenants requires a delicate balance of diplomacy, patience, and legal know-how.

C. Addressing Maintenance and Repairs

When it comes to property ownership, maintenance issues are just par for the course. Whether it's a leaky tap, a broken appliance, or a major repair job, dealing with maintenance issues can be a major headache.

Introducing Property Management Companies

But fear not, property owners! Help is at hand in the form of property management companies. These companies specialise in taking the day-to-day tasks of property management off your plate, leaving you free to focus on the things that matter most to you. Let's take a closer look at how they can help;

A. Defining the Role and Purpose of Property Management Firms

Think of property management companies as your personal property concierge. Their job is to handle all the nitty-gritty details of property management, so you don't have to. From finding tenants to handling maintenance issues, they've got you covered.

B. Highlighting the Range of Services They Offer

Property management companies offer their clients a wide range of services, including tenant screening and placement, rent collection and financial management, maintenance coordination, and emergency response. In short, they're your one-stop shop for all things property-related.

C. Explaining the Advantages of Outsourcing These Tasks

By outsourcing property management tasks to a professional firm, you can enjoy a whole host of benefits, including time savings, peace of mind, and access to expert knowledge and resources.

Unlocking Efficiency with Property Management

Now that we've covered the basics let's take a closer look at how property management companies can unlock efficiency for property owners:

A. Streamlining Tenant Screening and Placement

Finding and screening tenants can be a time-consuming and stressful process. Property management companies take care of this for you, using their expertise to find reliable tenants who will take good care of your property.

B. Ensuring Efficient Rent Collection and Financial Management

Collecting rent can be a major hassle, especially if you have multiple properties or tenants who are consistently late with their payments. Property management companies handle rent collection on your behalf, ensuring you get paid on time.

C. Handling Maintenance Coordination and Emergency Response

Maintenance issues can arise at any time, and when they do, you need someone you can rely on to take care of them promptly. Property management companies handle maintenance coordination and emergency response for you, so you can rest easy knowing that your property is in good hands.

Financial Benefits and Savings

But wait, there's more! In addition to saving you time and stress, property management companies can also help you save money and maximise your returns:

A. Maximising Rental Income Through Effective Management

One of the primary goals of property management companies is to maximise your rental income. They do this by setting appropriate rental rates, marketing your property effectively, and minimising vacancies.

B. Avoiding Costly Vacancies and Turnovers

Vacancies can be costly in terms of lost rental income and marketing and turnover expenses. Property management companies work hard to minimise vacancies by keeping your tenants happy and ensuring they renew their leases.

C. Managing Budgets and Expenses for Long-Term Financial Stability

Property management companies help you manage your budgets and expenses effectively, ensuring that you can cover your costs and generate a healthy return on your investment. They can also help you identify areas where you can reduce expenses, improving your overall financial performance.

Stress Reduction and Peace of Mind

Last but not least, property management companies can provide you with something that money can't buy: peace of mind. Here's how:

A. Leveraging Professional Expertise to Navigate Challenges

Property management companies have the knowledge, experience, and resources to handle any challenges that come their way. Whether it's dealing with difficult tenants or navigating complex legal issues, they've got you covered.

B. Ensuring Legal Compliance and Minimising Risk

Property management companies stay up-to-date on all the latest landlord-tenant laws and regulations, ensuring that you remain compliant at all times. This helps minimise your risk of costly legal disputes and liabilities.

C. Enjoying Personal Time and Freedom from Day-to-Day Tasks

Perhaps best of all, working with a property management company allows you to reclaim your personal time and freedom. Instead of spending your evenings and weekends dealing with tenant issues and maintenance requests, you can relax and enjoy your life knowing that your property is in good hands.

Choosing the Right Partner

Now that you know all the benefits of working with a property management company, it's time to choose the right one for you. Here are some tips to help you make the right decision:

A. Conducting Thorough Research and Due Diligence

Before you hire a property management company, be sure to do your homework. Research potential firms online, read reviews from past clients, and ask for recommendations from other property owners in your area.

B. Asking Key Questions to Assess Compatibility and Expertise

When you're interviewing potential property management companies, don't be afraid to ask lots of questions. Ask about their experience, their approach to property management, and the services they offer.

C. Evaluating Services and Fees to Make an Informed Decision

Finally, be sure to carefully evaluate the services and fees offered by each potential property management company. While cost is certainly a factor, it's important to consider each firm's value and choose the option that offers the best overall package.

FAQs (Frequently Asked Questions)

1. How do property management companies handle tenant disputes and conflicts?

Property management companies typically have established procedures for addressing tenant disputes and conflicts. They may act as mediators to resolve issues amicably, enforce lease agreements to uphold tenant responsibilities, and, if necessary, initiate legal proceedings for eviction.

2. Are property management companies responsible for property maintenance costs?

Property management companies typically coordinate maintenance and repairs on behalf of property owners, but the property owner usually bears the actual costs. However, some management contracts may include provisions for covering minor maintenance costs or charging a management fee based on a percentage of the property's rental income.

3. Do property management companies guarantee full occupancy of rental properties?

While property management companies strive to minimise vacancies and maximise occupancy rates, they cannot guarantee full occupancy at all times. Factors such as market conditions, property location, and tenant turnover can all impact vacancy rates. However, reputable property management companies employ effective marketing strategies and tenant retention efforts to optimise occupancy levels.

©MLM Property Management

Moving home is a stressful enough endeavour, but doing this with children is far worse than usual. It’s not just you who feels the stress; it’s your little ones. Children will often feel impacted by the process, especially the younger ones. This is why you may need to do a few things as you go forward with your plans:

Talk Them Through It

Simply approaching the children and explaining that you’re moving home may be something smaller children may struggle with. You would do well to sit them down and talk about what’s happening and what will happen when the day comes. Getting them used to the idea will help you when the day arrives, alleviating any issues and anxiety they may feel about leaving their current home and friends and moving elsewhere.

Take Them to See Their New Home

Another way to bring them in tune with the reality of this change is to bring them to a second viewing or take them for a walk around the area where you plan on moving to. Get them comfortable with the place, introduce them to the neighbourhood and the property, and you will have an easier time getting them to change homes when the time comes.

Ask Them What’s on Their Mind

While the first point concerns speaking to them, you must also understand their worries and concerns. If they raise any issue with the move, you should consider that and try to answer their questions honestly. Children can be more insightful than you think and may even reach a conclusion you may not expect, so you should give them a chance to be heard and have that conversation.

Choosing Your Moving Day

Selecting the right time to move isn’t always easy, but the more you plan, the easier it will be for your child. Many parents opt for moving days right in the middle of summer since it should be easier to move during term time. This may occupy them and gives you more time to handle things. The important thing is to assess the situation and to incorporate the move into your child’s routines as closely as possible.

Turn it into a Game

One of the best things to consider when moving house with children is to turn your whole day into one big game. This will not only get them interested in what’s happening that day,m but it will also let them enjoy the moment. Moving home is huge, but you may be caught up in the stressful angle of things as an adult. Lighten up and try to relax.

Make a List of New Things in Your Future Location

If you’re moving to a new area with many things you don’t know and your children may be interested, you should consider exploring everything together. Get the children excited about the new place; there will be fewer grumpy looks when you move.

Get Them Involved

Another great way to make the process more bearable and fun for your kids is to get them involved in moving. This may be something fairly simple such as helping you pack some things like their toys or other possessions. They can feel included in the process, allowing you to talk to them about the new place without making things feel forced and strange.

© MLM Property Management

You may choose to wait until the weather turns warmer and flowers are in full bloom, or you can start preparing your property for the market so it may have the best chance if you’re looking for an early spring sale this year. The intelligent seller knows how to make money with some forethought, as the spring season is a great time to get started. 

Here are Some Things to Remember on How to Prepare Your Home for a Spring Sale

Do Your Spring Cleaning Now

It’s not going to be easy, but if you plan to sell your property before summer arrives, you should start as early as possible with your preparations, including your annual deep cleaning. Not only will cleaning the home make it easier to sell, but it will also help you in many other ways. Clean homes will sell faster, and while the buyer will be aware that your belongings and clutter will be gone when they need to move in, it may be off-putting if the home isn’t clean when they come for a viewing. Get the cleaning out of the way now, so your home will look its best when it hits the market.

Run Your Inspection

The best time to do a top-to-bottom home inspection is when you’re doing a deep clean. Look out for what needs to be repaired and list things that need attention. Don’t stop, but follow through and get each of those things fixed before you decide to put the property on the market. Combine both tasks and save yourself time. Spring will come before you know it, so you should focus on getting things done.

Small jobs you can handle on your own must be done right away if you can. Anything significant that needs a qualified tradesman to handle must be addressed as soon as possible. If you are preparing to sell your home, feel free to give all these tasks a go.

Make Your Home Inviting

Give your yard a makeover, paint your window ledges and the front door, and refresh the paint when the weather affords it. You can even change the door furniture if you want to impress prospective buyers. First impressions count greatly, so you should use this to sell your property quickly.

The front of your property needs to look tidy and clean, so make sure this is part of your cleaning routine. Wash the windows, tidy up your yard and garden, clean the porch and so forth. Make your home as welcoming as possible, giving you an edge over any properties that didn’t make the extra steps necessary to make a difference.

Brighten Up Dark Areas

If your room lacks natural light or parts of it feel darker than others, try to fix that before putting the property on the market. Changes in colour, the addition of mirrors and furniture rearrangement will help bring more light into your property. Cleaning helps greatly, but you should find other ways to fix the issue before selling. 

Select the Right Estate Agent

The most important choice regarding a fast property sale during springtime, or any other season, is your choice of an estate agent. Having the right agent by your side will be extremely important to getting the right price and speedily selling your home this spring or any other season.

©MLM Property Management

Although it only happens sometimes, landlords may find out that the previous tenants left some personal possessions on their Property after their tenancy ended. In most cases, these items have no serious value, but they are something you'd worry about handling. Do you have a responsibility to keep any of those uncollected items found on your Property? Let's find out more ahead:

What Does the Law Say?

As you can imagine, some laws cover such instances, so landlords are responsible for keeping the items safe if they are left behind. This may seem at odds with the idea of someone leaving them behind, but it is relatively rare and still part of the rental business's work.

When a tenant leaves their goods behind, either after a tenancy has ended or they abandon the Property, the landlord is considered an involuntary bailee, pending collection. In this case, the Torts (Interference with Goods) Act 1977 gives the tenant more protection, but it may also be used to help the landlord, assuming the appropriate action was logged and taken. Under the same act, the landlord may sell any goods left behind if they tried to track down the owner before doing it. If the former tenant is found, the landlord must issue a notice of their intention to get rid of the goods before they proceed. They also need to include the details of how the former tenant can collect said items and the storage and disposal costs that may be disclosed within that notice. The costs cannot start until the notice period has expired.

How Long Are You Required to Keep the Items?

Under the same act, landlords must keep possessions found on their Property for three months. The idea behind that act is to cover individuals who placed their possessions with others, such as keeping a valuable item with them for repair purposes. In such cases, charges may be made for the repairs of such goods. These charges may be deemed too expensive for the owner, so the act was brought in to give the owner time to obtain the funds needed to cover such costs. As a rule, you have about two weeks to have your notice recognised before you can legally dispose of the tenant's possessions.

Can Goods be Held In Case of Debts?

In most cases, no. Suppose a tenant does leave some possessions behind, all the while owning your money. In that case, you can use these proceedings in such a way as to pay the debts owed, assuming you have followed all possible procedures and exhausted all other possibilities. The law declares that you must also do all you can to get the best possible price for the leftover possessions, and you need to return any excess funds to the tenant once your debts have been cleared. Ensure you have all the pertinent documentation regarding the sale of goods, such as valuations you may have done on the items before you sell.

What if You Can't Track the Tenant Down?

If you can't locate the tenant after they left the items on your Property, you may dispose of them and sell them. You must take all possible measures to track down the tenant and keep accurate logs of what you attempted to do to stay compliant with the law. That way, you can avoid the unpleasant possibility of a lawsuit if things go sideways.

©MLM Property Management

There are many reasons you might want to work on a buy-to-let investment, most notably because there are significant benefits to holding Property, especially in a diverse investment portfolio. Things could be complicated, though, so you need to know as much as possible before deciding to move. Let’s get over the basics of what needs to be done:

Doing the Prep Work

If you are reading this, then you are ready to put some work into research. This is important when it comes to buy-to-let investment. Knowing the area, you’re planning on investing in is also a major first step. This is much easier nowadays, thanks to the internet.

You should look for forecasts and predictions done by analysts and cross-reference your results to understand the market. Ask local estate agents and hear their opinions, speak to friends or family who may be living in the same area, hear them out and fish for more information on what life is like in the particular area of your choice. You can also do some legwork yourself if you feel up to it. Spend time there, get to know the locals, and look around for the essential signs of a great location. You need proximity to public transport, good schools, and anything that improves the life of your potential residents once you make a purchase. Those are the cornerstones of a solid estate investment, so look around and take notes. If you have heard that a certain area is growing in popularity, you should check for new businesses opening up. Gyms, restaurants and more are all great signs of growth, as well as any new building work being done in the area.

Look Beyond the Borders of an Area

Even though it may feel comfortable to go for a property nearby, you should look for properties farther away from you to diversify your investment. Areas already doing well as buy-to-let market locations are good choices, as well as any places that will attract younger professionals looking for a place to live.

Draw Up a Realistic Budget

This may seem like a no-brainer, but many first-time investors tend to get a little carried away in their ambitions when buying Property and don’t get their budget checked and balanced before they put the money on the table. You should check the additional costs you will incur during the process and the inevitable maintenance bills coming your way. Add in the expected rental income, but remember that you may have the Property empty for periods, so you need to understand how long you can manage the payments without tenants.

Don’t Overstretch

Just because you have the means to be a landlord doesn’t mean you have to rush things. You need to be well prepared for what comes ahead before you leap. Finding the right Property is very important, not simply buying any property. Your research will play to your advantage, allowing you to make the most of what you have to work with. Buying on the high end puts you at a financial disadvantage, so you will likely need to start smaller and move on to greater properties. No matter how attractive a property looks, you must remember you are looking for investment opportunities, not a home you want to live in. Choose wisely before you make the first purchase.

©MLM Property Management

With new technology being used in most fields of business, managers have centralised their services, so you won’t have to appoint a managing agent whose office is located in the same general area of your investment property. You should ensure you have someone with experience in the property market, regardless of your Property’s location. It will help you decide whether or not you feel comfortable working with them; that way, you can analyse their level of professionalism. When you meet your potential new property manager, you should clarify which services are included in their proposal and ask questions regarding routine inspections, rent reviews, arrears and other aspects of the business. The following five questions are some of the most important ones:

Does the Agency Have a Dedicated Property Management Department?

Many agencies see property management as a weaker version of the far more glamorous field of sales, and some may even leave the management of client assets to the receptionists and front desk staff. You must ensure that your agent works in a dedicated property management department. It would be best if this department is staffed by experts, with management continuity, in case a property manager falls ill or leaves. 

Is a Director or Owner of the Agency Involved in Day-to-Day Management?

Most agencies will have a rental department and a sales department. Generally, the business owner will have a sales background and not a rental background and will often look after the sales department, leaving the rental department in the hands of a property manager. This is often the case because the sales department has a higher turnover rate and income. The rental department is more intensive and harder to manage and has a lower income. You may find that the agency where the director has a more active role in the property management department takes the property management job more seriously.

How Many Years Has the Property Manager Been Working in Real Estate?

Going to a brand-name agency doesn’t necessarily mean improving their service. This is something that relates to the property manager and not the agency. Many people start their real estate careers as receptionists and then move up to property management or the sales department. Yet, in some cases, people stay in property management as a career, and this is the type of dedicated person you want to look after your Property and your interests.

How Many Years Has the Property Manager Been with the Agency?

You need to look for stability in your chosen property manager. Due to the stresses involved in this line of work, turnover rates are high, so you want someone who has chosen property management as a career. You want to have someone who learns everything about your Property, inside and out. You want to be able to pick up the phone and speak to them now or months down the line, the same person who knows your Property as well as you do.

Does the Property Manager Give you a Written Proposal?

Some property managers will go out and look at your Property, then say that they’ve put you in their books. You should look for someone who takes the time and effort to present a professional image and gives you a written proposal instead. If they make an effort to be as professional as this, they will likely look after your Property with the same level of professionalism.

©MLM Property Management

Keeping your communication going with owners is an essential part of property management. You will constantly need to know how they're doing with the properties, vacancies, rent rates, emergencies, compliance, turnover, you name it. But how can you get that information without being bothered by constant messaging or calls? How do you ensure you won't spend too much time responding to mundane requests and questions? You need to be prepared with a plan to relay it to the owners. The following tips will give you a hand in this:

Organise Property Management Communications

Before you do anything else, you should take stock of the types of information you are communicating with owners. This means quarterly earnings, vacancy rates, maintenance requests, tenant surveys, etc. You should review everything you wrote down and parse that into different categories. Consider which bits of information are more critical and which ones may wait. Which needs to have more time set aside, and which ones can be solved quickly? Determine the best way to get that information across to your property owners. Examples can be seen with general housekeeping and any upcoming events wrapped up in a monthly newsletter. At the same time, the annual and quarterly meetings are more effective for reviewing vacancies, turnover rates, earnings and other financial details. Most urgent matters should be handled by phone call.

Understand How and When Owners Want to Communicate

When you're on board with a new client, you may have already had the best methods of communication set up beforehand. Your email templates are good to go, quarterly meetings are planned, text alerts are ready if needed, et cetera. None of that will mean anything if the owner isn't in the habit of checking for any of that, or prefers to avoid text messaging, so all your best plans will be useless in such cases.

Naturally, there is no way you can fine-tune your communications to the needs of every person, but you can make small accommodations to the owners' needs. For example, you can give them the option to opt out of newsletters that don't convey the essential information. You can hold semi-annual meetings for people who can't make it there every three months, et cetera. You should remember that while you have a property management communications plan, things may change, so you may need to make changes to said plan.

Setting Expectations and Boundaries

Setting your expectations and boundaries is essential to keeping your communications focused and free of redundancies.

In starting a meeting with the new owners, you should go over communications policies in greater detail. Let them know how and when you will communicate with them so they can expect emails, calls and meetings alongside text messages from you.

Set up a schedule for face-to-face meetings and give the owners access to your video conferencing software. They should also have your phone number and email address so that you won't end up in their blocked call list or spam folder.

Let them know how and when you plan on getting in touch. Give them the names of employees who would handle specific billing, maintenance, and more questions. Whatever communication channels you choose and agree upon with your property owners, you should ensure it's all in writing and the owners have a copy. If you use a portal, upload the communications guidelines and agreements there so they can access them at all times.

Make sure you and your team are consistent with communications. Moving away from an agreed-upon plan will cause confusion and lack of efficiency, making things more complicated.

©MLM Property Management

The increasingly expensive mortgages and more stringent regulations are quite a challenge when it comes to purchasing a home, so what’s in store for landlords this year?

2021 saw another increase in house prices, with increased rental costs and record-beating low-interest rates in tow, making it an excellent set of conditions for landlords across the UK. The average house price rose by £23,902 over the last year, with landlords selling properties ending up with large profits as a result. With demand exceeding the supply of rental properties, rental costs have been increasing in rates ever since for the last thirteen years. Even when the increased tax levies have been a factor, buy-to-let investors have seen a very successful year. There are some drawbacks to 2022, however, so you need to keep those in mind as the year unfolds.

With changes to regulations requiring landlords to make adjustments to make properties more eco-friendly, as well as the proposition to scrap no-fault evictions altogether. 

House Prices are Stabilising

Since the pandemic started, house prices have been rising by an average of almost £34,00, being the highest growth since 2006. This ended up resulting in many landlords benefitting from the increase and making the decision to remortgage, sell or release equity. Despite the setbacks caused by the pandemic, the market has been improving and house prices are growing. This created great opportunities for investors, with their confidence in the market growing ever stronger over the last year. The buying activity and trends on the market show it will remain strong for the moment. That largely depends on whether or not demand will exceed supply as to whether the prices of housing will still keep rising in 2022. Many sellers are still waiting to see if they can find something they like that would sell on the market.

Without a catalogue of potential new homes, there is a high chance the realty market will become starved as the year progresses. House prices are expected to rise another 1% over the next year, according to Halifax, but both Savills and Hamptons are predicting a rise of about 3.5% on average.

Updated EPC Regulations

With more and more regulations and loopholes coming up for buyers to get through, it’s hardly a surprise that people are reluctant to invest. The EPC proposals mean that stricter regulations will be put in place and people will have to comply by a certain date.

Landlords will currently need to achieve a minimum rating of E on their energy performance certificate, as well as perform annual gas safety checks as part of operating their business. This increases to a required rating of C by 2025, so the government can attempt to achieve their goal of net-zero carbon emissions by 2050. Unsurprisingly changes to EPC regulation will be at the forefront of conversations in 2022. From 2025 on, all new lets, no matter the age or location of the property will need to have that C rating to stay in step with the government’s plans. This is supposed to be rolled out to existing tenancies, but rumours are flying around that the government may be planning to extend the deadline for new lets to 2026.

Increases in Mortgage Rates

Tax changes dealt additional blows to landlords over the last few years but were softened by the competitive and cheap mortgages available in such cases. With the expectations of rising interest rates in 2022, it may be possible that some landlords will opt to avoid investing as future profit margins will be down. The Bank of England increased the base rate from 0.1% to 0.25% and more rises are expected in the coming days.

©MLM Property Management

Before you decide to hire a property management company, you must know the kinds of tasks they work on, and how they focus on things like tenant disputes and rent collection. The following points will cover the basic responsibilities of property managers:

Handle Marketing and Leasing

When you hire a management company for the first time, they will need to do an initial walkthrough of your home, something which may include recommendations on things you should update or repair to improve its chances. The recommendations are there to improve your home, making sure you can attract better tenants and reduce long vacancies. There may be a need for crucial repairs to bring the home to comply with regulations, such as smoke alarms and door locks, so keep that in mind as well.

There should be examples of the types of photos the management company may use on their website. The photos should showcase the rooms with good lighting, allowing potential tenants to explore them without setting foot inside. Property management companies must also have skills in setting the right amount of rent for the area. Good companies are running rental analyses that break down what the home must rent for and the reasons behind that.

Selecting and Screening Your Tenants

Property managers are there to also screen prospective tenants. This means they will run credit checks, background checks, rental reference checks and so forth. This helps find the best tenants for your property. Some companies will choose the best from a handful of applicants, while others go for the first available candidate that fits the bill. 

The more established management properties out there have written rental criteria when it comes to choosing tenants. This document is written down and it allows you, the owner and the tenants to see why they were chosen or not. It also decreases the chances of any claims of a Fair Housing violation if the property manager can point out the published criteria for application denial.

Collecting Rent and Handling Accounting

The management company will also be responsible for rent collection from your tenants. The companies will have a specified property accountant handling that role. They will be there to deal with the responsibilities and make sure that people are paying on time and enforce late fees if they must.

Should any tenants refuse to pay rent, then the company will be handling the eviction process as well. They will also handle the legal matters attached to that process. Once the rent is paid, they will also deduct the portion of the sum that goes to them for a management fee, the miscellaneous charges for repair fees and so forth. The remainder of the sum goes to you. Most companies will have a statement with the deposit that shows the expenses for every month.

Handling Maintenance

Property managers also handle the maintenance of all your properties. This means any initial repairs and the improvements necessary to get the property rent ready. They will have a list of trusted vendors used to handle the repair jobs. Some of those will also have a contractor's licence and may even operate their maintenance firms. They will have a process for maintenance requests in place, based on urgency. That allows them to handle things promptly and without any complications for you and the tenants.

Most of the property management firms out there have a process for tenants submitting maintenance requests, including for any potential emergencies that happen after hours. Depending on the company, those may be submitted over the phone or online through a maintenance portal.

©MLM Property Management

Block management involves the managing of blocks of flats with individual properties under the ownership of leaseholders. A company or individual manages the properties of the block.

This involves taking care of maintenance, looking after the communal parts of the building, taking care of service charge collection and more. Managers have legal responsibilities to handle as well as maintenance.

Portfolio landlords are looking for new ways to use their knowledge, all so extra income can be earned, so managing properties is becoming more popular. The following points will help you understand the laws covering block management and obligations if you’re a manager:

Knowing the Lease Terms

Oftentimes, individual flats in a block may have very different lease terms. As the manager, you will need to figure out what each owner is allowed to do, and what you must do for them. This is one of your first responsibilities as a block manager.

Lease Terms Enforcement

If any of your leaseholders breaches the terms of their lease, such as making unauthorized changes to the property, as well as possibly sub-letting through a company like Airbnb, you will have to address the issue.

Handling Insurance

In each case, the owners’ service charge should include the contribution to the building’s insurance for the entire block. You will need to inform the insurer about the state of a few things, specifically:

The number of owner-occupied flats
The number of rented-out flats
The kinds of tenants living on the premises

These simple questions will help you get the right insurance coverage for your specific situation.

Health and Safety Inspections

As the building manager, it will be your responsibility to ensure the site is always in compliance with health and safety regulations. You will also need to follow maintenance work only carried out by approved contractors.

Fire Safety

You will be responsible for risk assessment and you need to cover all the fire safety measures your building needs for communal areas. This includes alarms, extinguishers, fire doors and more. The best way to get this done is to have a visit from a professional fire safety representative. This will give you the assessment and the exact specifications of what needs to be changed.

Routine Inspections of the Premises

You have to schedule regular inspections of all communal areas, both inside and outside your building. This is necessary to ensure the building is in good condition and that nobody violates the terms of their leases.

Keeping Records

The more detailed, the better. It will be your responsibility to keep those records regarding work done on the building, inspections, payments made and so forth.

Accounting Responsibilities

The block manager is also responsible for collecting service charges, ground rent, budgeting your management account, resource allocation and more. Ensuring the accounts are prepared for your shareholders of the block falls under this point. Management companies benefit from appointed accountants in this case.

Section 20 Notice

This is something that needs to be carried with certain building works, with the cost of each individual leaseholder being no more than £250. There is a consultation procedure in three steps that the manager needs to follow in such cases. If this isn’t done properly, you as the manager will be liable for the cost of the works, over £250 per leaseholder, so keep that in mind.

Keep Up to Date with the Law

You need to ensure you know about any changes in legislation and amendments to the existing laws that may affect the block and your management work, so don’t underestimate that.

© MLM Property Management

If you are a landlord, or perhaps are thinking of becoming one by investing in residential or commercial premises, you may be faced with the decision of whether to get a property management company to deal with the assets. 

If you own several properties, you will be hard-pressed to find time to manage everything. And when you waste time on such tasks, you are essentially wasting money as well. When you pick a property management service, you get access to professionals with a broad skill and competence to take care of your investment, all the while you enjoy its profitability. Here are some of the major benefits of working with a property management service in greater detail: 

• Keeping up with changes in legislation – oftentimes rental properties are subject to changes in legislation. This entails new and changing responsibilities of landlords towards their tenants and their properties. There is no way for you to ignore any such changes, especially if they involve safety checks, fire safety regulations and special case legislation. Failure to comply with new legislation can be very dangerous, so you need a reliable property management company to advise you on such things. Not only will they make sure you are compliant with the latest legislation, but also inform you of pending changes sometimes before they happen so you can prepare. That way you will have your properties and your tenants well-covered. 
  
  
• Collecting rent – one of the most important tasks a landlord needs to take care of is rent collection. Ideally, they will never need to deal with delays and no rent payments, but sometimes tenants tend to run into problems that lead to partial/delayed payments. Property management services can be the thing you need to ensure rent is collected every month. They can also manage disputes as they arise. Property managers act as a buffer between the landlord and the tenant, dealing with any issues along the way, without getting the landlord involved in time-consuming matters. 
  
  
• Helping you make the most of your investment – with a good property management team by your side, you can expect a lot of help. They will deal with some of the day-to-day facilities, as well as rental income requirements, ensuring that you make the most of the place as an investment. They may have valuers on the team, which will evaluate the property and guarantee you get the best possible rent for it, based on the current market situation. They can even come up with great ways to market the property and attract the right tenants, who will not cause trouble and who will stay for a longer period. All of these combined services make the aid of property management companies invaluable to landlords and they are reasons for you to consider working with such. 
  
  
• Property repairs – a lot of landlords find it very difficult to deal with all of the maintenance and repairs involved in rental properties. It is important to have the necessary skills to assess maintenance issues and deal with them before they have had a chance to escalate. A lot of property management companies work with chartered surveyors, who can advise on a lot of the maintenance and repair issues that may arise. 
  
  

Evidently, there is a lot that a property management company can do for a landlord. If you are in this role, you should do your research on a reputable company, which will provide you with good services. 

© MLM Property Management

If you own an investment property, you know that you can gain a lot of financial benefits. However, you have to be prepared to manage the said investment well, or you risk a financial loss instead. This is the main reason why many landlords prefer to put this task in the hands of professional property managers. If you are a landlord and you are still contemplating whether to do it, you only need to consider the following reasons for such a move: 

• Tenant screening – one of the major duties of property managers is to provide tenant screening. This means that they ensure the landlord gets a vetted tenant, who is much less risky than a tenant who they know nothing about. The company the property manager works for will follow an established process for vetting new tenants, assessing all risk factors involved. All of this ensures the tenants that end up in the property stay for longer and increase the landlord’s profit. Because the property manager will get important information like proof of income, references and credit history, the landlord can count on reliable tenants for their property. 
  
  
• Good understanding of property management laws – every property owner and tenant needs to be educated about various housing and safety laws. And sometimes the landlord is simply no expert on the matter. This is where the property manager comes in. They can share their knowledge on the matter and make sure that everyone understands their duties and responsibilities. 
  
  
• Dealing with maintenance and repairs – one of the major aspects of rented properties lies with the maintenance and repairs needs of the tenants. A landlord needs to be on top of any regular maintenance work, and also ensure that any emergency repairs are carried out promptly. No tenant will like it if they have no access to hot water for example. This is something that a property manager will address. They will deal with the maintenance process by working with trusted contractors. If there is a need for emergency repairs, they will be quick to respond. What is more, they will do a regular checkup on tenants and the property, to ensure any small issues are addressed before they have had a chance to turn into a major problem. 
  
  
• Routine inspections – it is important for property managers to do routine inspections of a property. The goal is to have a thorough move-out and move-in inspection process, which ensures the property is ready. More importantly, the property manager will see to it that any problems are addressed, saving the need for the landlord to get into a discussion with the tenant and avoiding conflict. 
  
  
• Evictions – if tenants break the tenancy agreement they sign, or don’t pay up their rent, the property manager will address any eviction issues. They will guide the landlord and the tenant on the legalities involved in this move. 
  
  
• Saving time – a landlord will need to deal with a lot of other work and sometimes they will have no time to deal with tenants, repairs and everything that is involved in managing a property. That is why it is very useful for them to rely on a good property manager. The latter can deal with any such tasks, leaving the landlord more time to deal with their work. Saving time means saving money! 
  
  

When it comes to getting help for their investment property, landlords can always rely on the assistance of property managers. Getting these services means saving a ton of time and effort, all the while ensuring many benefits for both the landlord and the tenant. 

© MLM Property Management

Many homeowners choose to rent out their property because they find the extra income to be an appealing concept. However, for every flat owner out there, there are many things to keep in mind, if they wish to make things work. In this guide, we will have a look at the most important points.

What is subletting? 

Many people seem to confuse what subletting is. Essentially, this is letting out your property to another party, while you live somewhere else. Many leases list this as acceptable, even if there are certain requirements. Taking in a lodger can also be classed as subletting, especially when you give them rights over your flat, or parts of it. Some leases will not allow this, as it comes in the form of ‘alienation. 

What is in the lease? 

The key thing to know is to consider what the lease says. Some time ago, when the first leases were created, subletting was not a thing. Leases didn't need to include any clause about subletting. But nowadays things are different. That is why it is important for anyone wishing to sublet to check their lease agreement. It may be the case that it forbids subletting specifically. 

Does it apply to garages? 

Alienation does apply to garages, as well as parking spaces and out-building included within the demise of the lease. For anyone wishing to sublet their flat, they have to include any such component in the tenancy. That means if you own a flat with a parking spot/garage, you cannot sublet the latter alone. Only if you have a separate lease for the garage or parking spot can you consider subletting them. 

How long can you sublet? 

Typically, there is no limit on the sublet period, unless it is stated in the lease. However, it is usually the case that a letting agent will recommend a more sensible letting period, with a follow-up contract. Short sublets can be problematic. There are clauses that prohibit businesses being run on the premises, as well as more than a single household using the property. This means that sub-letting a flat as an Airbnb can be somewhat problematic. 

Who can you sublet to? 

It is not the case that you can sublet to whoever you want. Once again, it depends on the lease and what conditions it has on who you are allowed to sublet to. For example, you may find that you can sublet your home to a single household. This makes it impossible to let an individual room as an individual tenancy. 

Number of tenants 

The size of the home usually places a limit on the number of tenants you can let it to. A lot of boroughs in London have a landlord registration scheme, which allows for home assessment for owners to obtain a licence for subletting to a certain number of people. For instance, a home of 2 double bedrooms will allow for a family of 4. But there are certain box rooms, which don’t meet the minimum requirement. And even without a landlord registration scheme, you will have to make sure the property is not overcrowded. 

What about the money? 

If you collect income from your home, when you sublet, you will need to pay tax on it. This means you need to carefully consider the outgoings if you want to make money this way. Many people fall into the traps of subletting without first talking with a professional about it, and it creates many problems for them. 

© MLM Property Management

Without a doubt, the rental market is facing a lot of challenges due to the pandemic. It is the property managers, who have faced the most of them. From trying to accommodate safer and healthier environments, to avert all sorts of damage that delated rental payments could do to the rental ecosystems. A lot of new trends have arisen as an answer to the problems. The most important ones are likely to continue in the future and become the norm, not just goals for property managers. Here are few examples of such trends:

• Property managers are spending more time dealing with the concerns of their residents – in the past, it seems it has always been the same 3 priorities that property managers rank as most important – profitability, efficiency and growth. However, things have changed in 2020, with residents moving to the list of top priorities. This reflects the change in how property managers spend their time during a tumultuous period like this. The main focus has been on renters and the homes they occupy – keeping units full, keeping up the rent money flowing, all the while ensuring the safety of all residents. There is more communication with renters and more active steps to reduce the strain on people who have lost their jobs. Some property managers are helping residents with filling out financial aid forms, and otherwise being responsive to problems that have been outside their scope, until now. That is a trend likely to continue.
  
  
• Technology embedded in the property management business – for those property managers who have not moved most of their processes online, things have been really difficult. This is a trend that is likely to remain for a long time. After all, staying connected and getting things done without necessarily meeting people is no longer an option currently. Property management technology trends have risen to meet this challenge. They have brought many advantages to an industry that previously relied on a lot of face-to-face connections. And property managers report that such changes have brought positive outcomes to their work. It is the customers of these services who have benefited as well. From virtual tours of rental properties to electronic leasing, everyone seems to be on board with the new means of doing business and that is likely going to improve even more from here on out.
  
  
• Owners need more insights and communication from property managers – during the pandemic, clients of property managements services find a better appreciation of the expertise that property managers bring in regards to rent collection and working on payment plans. With evictions and late fees changing due to the Covid-19 pandemic, and the costs of running rental properties going up, it is property managers that need to bring a balancing act. They have been expanding their services and keeping closer communication to property owners about regulatory changes, vacancies and payments. Naturally, owners are all in favour of this communication continuing in the future.
  
  
• Property managers are relying on new ways to grow their business – if there is one thing that the pandemic has helped property managers with, it is to highlight the importance of strategy and technology are essential for growing the business. As regulations change, DIY property managers/landlords will not remain in the business, as profitability becomes harder to achieve. Strategies for growth based on objective realities and novel ways to boost the business will become more prominent in the years to follow.
  
  

These are all essential trends, born out of the events of the pandemic. They are likely to persist, changing and improving the property management scene in the future.

© MLM Property Management

People usually don’t like digging into their mistakes. For property managers, however, that is a necessity. There is no other way to improve their work and become better at what they do. For any property manager who cannot track these problems, there is the potential to incur financial losses and miss out on many opportunities. Here are some examples of the issues that can take place in 2021: 

• Not automating processes – every property manager, who respects their time and knows that the more efficient they, the better for their job they are, know that they need to automate certain processes. Things like tenant communication, maintenance, rent collection, accounting and bookkeeping should all be automated. At the same time, relying less on face-to-face meetings can further free up some time, and make time management all the more possible. 
  
  
• Not paying attention to tenants – if property managers don’t communicate with tenants, the latter will not find the need to cooperate when the time comes. It is much better to keep close track of rental experience through communication with the tenants. According to experts, lack of communication or poor communication stands at the root of staff issues. It is important to keep in touch, even from a distance. 
  
  
• Doing no tenant screening – to ensure a tenant is suitable for the unit, a property manager needs to employ a variety of methods. They can resort to social media, services and even prepare a handful of smart questions that will give them a better idea of how suited the tenant is. All of this serves to reduce advertising costs, vacancies, lost rent, evictions and unhappy landlords. 
  
  
• Poor accounting practices – there are no two ways about it – property managers need to address accounting matters to a large degree. That is because they need to work on aspects like income attribution, managing expenses, etc. All of that they need to do to the correct account, where information is properly laid out and accessible by the landlord/s. Oftentimes they will need specialised dedicated software and other solutions, to address this aspect of the work. 
  
  
• Doing no social media activity – many landlords and tenants will believe what their property manager is telling them if there has been some prior engagement on social media with them. That way property managers can create a connection, which demonstrates that they want to be engaged in the work. This also shows attitude and intent, which creates additional value for the same people who will use the services of the property manager. The fact that most social media channels are free helps a great deal too. 
  
  
• Doing no marketing of property management services – every property manager needs to get out there and connect to as many people as possible. If they are doing no marketing, then that is hardly going to happen. A good website and a dedicated marketing strategy to reach as many people as possible is one of the goals that every property manager needs to have. 
  
  
• Making rent payments more difficult than they need to be – nowadays more than ever people are interested in making online payments. Their rent is no exception. By providing online payment solutions, property managers can not only improve rent collection rates but also minimise the risk for themselves and the tenants they serve. There is no doubt that every property management company needs to find online payment solutions for all its clients. 
  
  

These mistakes are the ones that property managers need to be most aware of in 2021. Only by paying attention can they avoid them and ensure success in their work. 

© MLM Property Management

Despite the fact the real estate industry is getting constantly outfitted with new technology and modern trends, it is property managers that seem to be facing persisting challenges. There are major factors, such as the state of the economy, but also smaller ones, like tenants, landlords and buildings. 

Sometimes it takes more time to resolve this than work hours allow. However, it is through sufficient planning and executing the right moves that property managers can stay on top of the main challenges in business. Here are a few examples: 

• Responsibility – for a landlord and a property manager to form a mutually beneficial relationship, they have to build trust. And when you think about it, it is property managers who are responsible for bringing in the right tenants through various screening methods. This calls for diligent evaluation, which is a responsible task to do. 
  
  
• Risk – there are a few liabilities and risks that every real estate management company needs to address. The managers can never afford to ignore any modes of health and safety inspections that should take place within the properties, like gas and fire safety, energy performance and electrical safety. Failure to execute any of these and properly audit the trail of activities associated is a risk for tenants, landlords and realty firms involved.
  
  
• Time constraints – a property manager fully understands how valuable time is, especially since they need to coordinate landlords, facility suppliers and tenants. This is very difficult to do, and it takes experience and the proper utilisation of technology to get right. 
  
  
• Support tech – speaking of technology, more and more property managers are starting to use cloud-based solutions. This allows them to greatly streamline and centralise their audits and streamline operations. Once the cloud-based technology is properly implemented, property managers can begin to take full advantage of it. 
  
  
• Operating costs – one thing that can affect the revenue of property managers is increased indirect costs. This means they will have to spend more on materials and tools for maintenance. There are certain initiatives, which can help them out, as long as they take the time to familiarise themselves with the program and how it can work for them. 
  
  
• Tenants – there is one thing every good property manager knows: it is much more demanding to bring new tenants in property than it is to renew a contract with any of the existing tenants. That is one of the greatest challenges that property managers face is setting a good relationship with these people. Tenants demand various things, from the most typical comfort requirements to more advanced demands like improved security of the property and frequent audit. Over time, tenants want to be able to utilise the space more efficiently via creative floor plans. Meeting all of these demands is not always easy and a successful property manager needs to know how to best address them. 
  
  
• Staffing – property management companies always have to be on the lookout to find and train customer-oriented staff. There is training required, as well as securing competitive wages for these people. After all, a company is only as good as the people working for it and providing its service to clients. Some other staffing challenges occur when it comes to outsourcing some services, like janitorial work and handyman services. 
  
  

These are most of the common challenges that property management companies nowadays face. They need to stay on top of these challenges because finding efficient ways to overcome and stay ahead is what separates the good property management companies from the bad. 

© MLM Property Management