An increasing number of landlords independently managing their properties

An increasing number of landlords independently managing their properties

11:55 AM, 14th September 2016, About 5 years ago 13

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An increasing number of buy-to-let landlords are becoming ‘self-sufficient’ by letting and managing their own rental properties, according to a new report.penguins

Two thirds (65%) of landlords have an active role in the maintenance of their property and deal with any tenant issues independently without the assistance of a letting or managing agent.

41% of landlords manage everything to do with their buy to let property by themselves whereas 35% use an agent to do everything.

24% use an agent to find suitable tenants and then manage the property themselves.

The report analysed over 10,000 addresses and has revealed that a fifth of landlords live within a mile of the property they rent out and 46% live between one and 10 miles away.

The close proximity of landlords and their buy to let properties could explain why many are now able to independently manage their investment, without the help of agents.

“There is a vast amount of information available for landlords across different platforms such as the Property 118 website and our Landlord Zone, which is helping landlords become increasingly savvy,” said a spokesperson for Property 118’s landlord insurance provider Discount Insurance.

“In addition to having more know-how, if a landlord lives close to their buy to let, it is much easier for them to manage the property because if an emergency arises and something needs to be repaired quickly, the property can be reached relatively easily,” added the spokesperson.

The majority of landlords own just one home, with 45% of those polled owning a single rental property.

40% own between two and five properties and 15% said they have a portfolio of more than five properties, the report by Simple Landlords has revealed.

65% of landlords have made a conscious decision to invest in buy to let property, however 17% identify themselves as ‘accidental landlords’ who decided to rent out a property that was inherited or were unable to sell their home.

9% of landlords bought their property specifically for a family member to live in, such as for a child when moving to university.

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Comments

by Bill

11:06 AM, 17th September 2016, About 5 years ago

Reply to the comment left by "Adrian Jones" at "17/09/2016 - 09:37":

Yes, and it wasn't difficult. Just log onto their website to register. However if you self manage you must obtain a license.

by Adrian Jones

11:24 AM, 17th September 2016, About 5 years ago

Reply to the comment left by "Bill Williams" at "17/09/2016 - 11:06":

Thanks Bill. I have registered. It looks like I need to do the Rent Smart Online Landlord Course which costs £30 in order to get my license which costs another £144.

I've called them several times but can't get through. hopefully they will respond to my email.

By the way I did notice failure to comply could result in a £10,000 fine!

by AP

11:52 AM, 17th September 2016, About 5 years ago

Reply to the comment left by "Yvonne Francis" at "15/09/2016 - 17:42":

I also successfully self manage 7 flats (it used to be 9). I'm helped by the fact that 4 are in one building about 15 minutes drive away, 2 are in the same building I live in and the last one is above my office!
I've tried to find tenants myself advertising on property portals a few years ago but found it to be a waste of time - I had very little interest and the interest I had was from unsuitable tenants. I was very surprised by this so continue to use agents to find tenants (having found reliable agents that will negotiate their fees - being in west london this is still 9% plus vat and 6% for renewals capped at 2 years. Some agents simply won't negotiate on fees.) I know I should try again as I actually always meet prospective tenants once terms have been agreed through an agent so that I know they will be good tenants myself.
I self manage so that I can keep an eye on the expenditure. Like Yvonne though, I believe I spend more on maintaining the properties as a result - but this is to an impeccable standard as I am hiring only reliable top quality tradesmen so that I can continue to get the maximum rents for the properties.
I would say the biggest problem I have is finding a good quality carpenter / handyman / multi skilled builder who will do small jobs or even a day's labour for under £200. The guy I used to use moved out of London. I have a great electrician, plumber, roofer, decorator and gardener - but no carpenter or multiskilled builder! Most of the so called handymen in London just don't know what they are doing and the top notch tradespeople who understand about getting a quality finish are employed full time by the high end construction companies. I'd happily pay 4% to a management company that understood and shared my approach to looking after the properties, but also had a better team of contacts than I already do! Unfortunately when I've seen what the agents in the area do for management, they charge at least an additional 6% plus VAT and the tradesmen costs are really over priced for not really very good quality work. So I just carry on, stuck in my rut! I would be really interested to hear from anyone in London who either finds their own tenants successfully or uses a fantastic management company on the other side!


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