General (main property discussion here) - Letting agents management

Hi, I recently bought and let out my 1st property via an estate agent using their 'fully managed' agreement. A few months on and I don't feel that the management charges (10% + VAT) really justify what they have to do (and it'll cost me ~£900/annum). Anyone got any advice on whether to do fully managed, self-managed or a half-way house i.e. estate agents to find tenants, set up tenancy agreements etc, but them to manage tenancy myself.

Are you close to the property?

it is just 5 minutes by car so easily accessible.

Having a management company in place is ideal if you live far away like I do....over the English channel...but if you live 5 mins away and you can be bothered with phone calls at daft o'clock for stupid little problems the tenants may have...or even major probems...then go it alone!

Good luck

Simon

"it is just 5 minutes by car so easily accessible."

You might as well manage it yourself then Raj.

thanks for the advice so far. In managing a property by myself, what safe guards should be put into place if something serious goes wrong - eg plumbing or electrical emergency in the middle of night. Whilst searching the net I have come across companies e.g. Homecall, which cover emergency call-outs for a number of eventualities. Any advice on this type of cover

Sounds like you have got the eventualities covered, make sure you have the numbers at the ready. But think about it, even in your own home what are the chances? But, keep the numbers close.

As it's nearby, just use the agent to get them and maybe collect the money (with the new law on keeping the deposit).

One other thing I have - get a British Gas five star contract thingy. It includes the annual Landlord's gas certificate inspection in the price, so it works out good value I reckon, not to be called when the heating isn't working.

I completely agree with Frank. Collect your own rent, save on the commisions and buy another house with the money you save - it really is that kind of money!

If you develop a good working relationship with your tenant, chances are they will not call you in the dead-of-night with a simple problem... it most likely would be urgent. That being the case, it your duty anyway... As Frank says, just look at your own house, how many times would you need very urgent call outs at night, when you start with good quality, in good working order, boilers etc...?

Regards, Malik

I just wondered what the management company did/or didnt do ??

Most of the time, the 10% fee is to cover all of the work that happens at the start of the tenancy, in terms of finding the right tenant, advertising, doing the viewings, qualifying the leads, etc.

once the tenant moves in, then its just a case of ensuring the rent comes in, and dealing with any issues that arise.

We, for example, just charge £295 to find the tenant and then hand it back over to the landlord - as I said, the hardest part is finding the right tenant in the first place, if thats done correctly, then the rest of the tenancy should be straight forward.

A good management company is a little like insurance, in that you may never really need to use them fully, but if you do (for example, awkward tenants, non payment of rent, late payments, etc), then thats when the management company really comes into its own.

It sounds like you're having a problem with then tenant possibly, and the management company arent doing what they said they would. I would advise you escalate it to someone higher up really.

Hope some of that helps !!

Daniel Latto http://www.thethinktankgroup.co.uk