Unless you’ve owned a rental property it’s hard to explain to anyone what an absolute nightmare it can be to manage a property. Letting agencies can be complex and infuriating to work with. In essence the traditional agency model is fundamentally flawed. Let’s take a look at why?
Letting a Property the Traditional Way
You employ what you believe to be the best local agent to
let the property for you.
The front-end letting team controls the marketing and
completion of the rental. There are
normally two fundamental flaws in this system. 1. The lettings negotiators are
normally on personal commission and are therefore battling colleagues to get
the deal done first. Quality of tenant is often overlooked in this quest to
earn this commission and what is best for the Landlord sacrificed in order to
do the deal. 2. There is also a disconnect between this team and the property
managers who will be looking after your property on a daily basis. ‘Do I really
care if these tenants do not behave themselves as the property management team
will have to clear up any mess?’. ‘I have been paid so all good.’
When the property is rented, it’s handed over to a Property
Manager. In general, most property managers know how to instruct a contractor,
but this is all they know! They usually share a fundamental belief that the
tenant is the enemy and should be dealt with accordingly. “The Landlord is my client, you don’t count!”
Sadly, “The Landlord is my client” goes right out the window,
when it comes time to handling repairs or inspections. The property manager
will look for the path of least resistance – you pay the bill no matter who
made the mess and they never question a contractor’s bill! Chasing a tenant for repair costs is way too
much hassle, so they don’t do it.
Then of course there is the accounts department. Not much to
go wrong here, right? Collect the rent and pay the Landlord. Simple. But, what
happens if the Landlord has a query on a deduction? Your average agency account
team will say, “I just do as I am told by the management team.” The Landlord
then gets in touch with the management team who will probably say, “I didn’t
instruct that work, soandso did and she/he is on the other line, or on annual
leave.”
Eventually it’s time for a renewal. Most renewal agents get
a fixed fee of about £50/renewal. It makes no difference whether it’s at the
going rate, or lower or higher. Why would they make it more complicated by
finding out market conditions etc? Bottom line is you may be missing out on a
legitimate increase for the sake of an easy life for the agent.
And so it goes around and around. On average you can expect to deal with up to
five different people in the same agency … and still not get the support you
need. Lord help the Landlord if they own multiple properties in different
towns. The number of different people a landlord has to juggle is bewildering.
Sound familiar? Then read on…..
The PPM Approach
One point of contact for everything. We manage the letting
agent, take care of the paperwork, keep the property up to spec, keep an eye on
your investment, make sure you pay the best prices for services and we treat
tenants like human beings (imagine that!) so you get the maximum rent you can
with the best tenants.
We will source and employ the best local agent to market the
property, we will then negotiate the best possible deal, financially and
contractually, and when this is done we will thoroughly vet the tenants and
make sure they’re good fit for your property.
It’s not in your interest to have unhappy tenants. The
happier they are, the longer they will stay, and they will take better care of
the property. Our philosophy is to always treat the tenant well (with respect)
and provide them with a great service.
Whether you own 1, or 100, properties, you’ll still only
have ONE person to deal with.
We take care of it all and you will have 24-hour access to what’s
happening with your property via our client portal. One person dealing with it
all. Your account manager will know the answers to your questions, but for the
most part you won’t need to ask.
Property management that works for everyone.
