How to manage multiple rental properties
While some portfolio landlords use a letting and managing agent, some will self-manage in order to reduce their overall costs, especially if they do this as a full time business
Managing just one property may not be very demanding, but once you have three or four, you certainly need to have reliable systems and processes in place for all aspects of the letting process and understand all the national and local lettings laws, including:
Screening and referencing tenants
Monitoring, reviewing and renewing tenancies
Responding to tenants’ queries and complaints
Keeping track of rental income and regular expenditure
Staying on top of maintenance and repairs
Keeping up to date with legal changes and making sure all your properties remain compliant
For more detailed information on what’s required to successfully manage a buy to let, see our ultimate landlord’s guide to rental property management.
Many landlords with multiple properties have set up a professional letting and management business of their own.
Depending on the size of your portfolio, you might want or need to bring in other people to help you and build a small team – whether that’s because of your own skills gaps or simply because you don’t have enough time to do everything yourself.
Here are some of the key questions you need to ask yourself:
Where are you going to base your business?
Is there a suitable room in your home or would it be better or necessary to rent dedicated office space?
How organised are you?
Keeping track of all the paperwork, renewals, etc. for one property might not be too challenging, but when you have multiple properties, you’ve got to have excellent administrative skills.
Is this something that comes naturally to you, or should you hire someone to help?
What software do you need?
These days, there are numerous property management software packages that can help you stay on top of all your property and tenancy information and administration, bookkeeping and accounting.
They let you manage everything in one place, set reminders for things like gas safety checks, and you can even automate some tasks – all of which saves you time and reduces the margin for error.
Two of the top-rated UK providers are Arthur and LandlordVision.
How are you going to communicate with and respond to tenants and contractors?
Responding to enquiries, dealing with issues and arranging appointments can be time-consuming and sometimes challenging.
Who is the best person to deal with this aspect of the business?
How are you going to make sure you stay legally compliant?
The vast majority of self-managing landlords join a landlord association that can give them appropriate training, advice and legal support. Our article highlights the benefits of joining a landlord association.
Will you need to belong to a Property Redress Scheme? Be qualified?
If you set yourself up as an agent and take on other people’s property lets, you will need to abide by a new set of rules and regulations. Visit the Property Redress Scheme for more information.
The National Residential Landlords Association (NRLA) is the UK’s largest membership organisation, providing:
Free expertise and resources
Discounted products and services
Free networking events and regional support
Free legislative updates and webinars
It’s also well worth joining a local landlord organisation to help you stay up to date with specific local authority rules and other developments in the property market in your area.
How much can you afford to invest in your business?
Having a business plan not only for your properties but also for your management system is key to making sure your property portfolio delivers the profits and returns you need.
As well as taking advice from a wealth manager or financial adviser, it may be worth speaking to a business coach who can help you establish and grow your property management business in the right way.
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