Managing your own tenancies
The Shift in landlord management trends
It goes without saying that landlords are divided into two camps when it comes to tenancy management. Those that manage themselves and those that use a letting agent. But I have recently detected a change in the proportions.
If you go back 15 years or so landlords used to decide their option mainly on the basis of the following factors:-
- Their confidence
- Their available time
- Their handyman skills
- A knowledgeable or experienced friend for support
- Their current or past main employment
However, since the financial crisis circa 2008, the housing crisis and BREXIT there is a trend towards small portfolio landlords to managing their own properties. Whilst I can understand why this might be – money issues and a negative perception of letting agents – I have a tendency to advice landlords to air on the side of caution. Don’t get me wrong, I applaud landlords who manage their own properties. After all, they exhibit the entrepreneurial spirit that we love in the UK. My word of caution is based on an increase in Political influences in the residential property market.
The new Political era in the residential property market
In recent years the difference in ideology between the main Political parties has narrowed and the disenchantment with mainstay politics has become all too obvious. Politicians have to capture the voter – particularly the 18 to 35 age group by targeting voters real needs. There is no greater need than affordable housing which, in my humble opinion is not going to be satisfied anytime soon by dramatic house building targets. Faced with this prospect the current government has come out with one set of measures after another. The aim is to target what they see as the landlords and agents who provide sub-standard accommodation at extortionate rents and who charge unreasonable and hidden charges. Unfortunately, these new measures are blunt in their approach. Rather than change the attitude and practices of the few these rules and regulations are hitting the vast majority of property providers whose plan was to offer decent accommodation and a good service at sustainable prices.
Making your choice for property management
If you’re still enthusiastic about being a landlord – and I truly hope you are – then you need to decide on your particular management option based on a comprehensive assessment of your own ability to cope with the existing and future regulatory pressures. First of all, I urge you to read my article on “Landlords and the law” and keep coming back to my site to read up on the breaking news where I try to give you the “heads-up” on things before it happens. Secondly, as any good businessman will tell you, keep yourself up to date with your responsibilities in your business – both local and national.
The following table may not be fully comprehensive but is aimed at helping you to decide your property management option via a set of pertinent questions:-