Are you considering managing your property portfolio yourself? Then you may want to think again. Even though self-management can seem like a good idea since it gives you total control over costs, tenants, and your income, in reality, it can be a headache. Here are five big dangers of self-managing your property portfolio.
You can’t find suitable tenants
One of the most common issues people face when managing their own properties is struggling to find suitable tenants who can be relied upon to not just pay their rent in full and on time each month, but take good care of the property. Since you may not have the resources to carry out the necessary checks, you could find yourself with bad tenants. Employing a property management company will lessen the chances of this happening thanks to them employing strict vetting schemes.
Managing your properties takes up all of your time
Self-managing your properties can be very time-consuming, which means it’s likely to take you away from your other commitments. From finding the right tenants to dealing with maintenance issues, managing rental properties is almost like a full-time job. You need to make yourself available 24/7 in case of emergencies. For example, a burst pipe, the boiler not working, or damage to plumbing are all issues which require urgent attention. If you have a day job that demands much of your time, you should think carefully about self-managing your property portfolio.
Your property isn’t properly maintained
When managing your properties yourself, you may not be able to ensure they are properly maintained throughout a tenancy. This can lead to your assets reducing in value over time. Hiring a property manager will ensure that regular property inspections are carried out, providing accurate reports and taking action if a property isn’t being looked after to a high standard.
You fall foul of the law
Importantly, self-managing landlords risk falling foul of the law if they don’t fully understand their legal obligations when leasing a property. Whether it’s the requirements for connecting smoke alarms or ensuring minimum security standards are adhered to, there’s a lot to consider when you’re a landlord. Even if you are legally-minded, legislation is constantly changing, and you need to be prepared to keep abreast of current rules and regulations concerning rental properties.
Landlords who self-manage their properties can easily come unstuck with the legal side of things, and the consequences can be incredibly serious indeed. Custodial sentences are possible in some cases.
You lose money
You might think that self-managing your property portfolio will save you money, however, this is rarely the case. Property owners often make mistakes that have negative financial repercussions. From securing bad tenants who either don’t pay rent or damage the property, to overestimating the rent they should charge leading to lost income through a high vacancy rate, there’s a lot that can go wrong financially for landlords who go it alone.
Hiring a property management company can be worth every penny, particularly if you’re looking to grow your investment over time. More and more landlords are choosing professional property management London to safeguard their properties into the future.