If you invest in real estate or have a diverse portfolio with property investments in it, you want to get the most out of your property. This means ensuring the building is always occupied with its security guaranteed. The two main options are going with a property management company like UpperKey or a property guardian.
What is a Property Guardian?
Although there is no set or agreed definition of a property guardian, they are primarily thought of as people who enter into agreements to occupy the whole or part of a property. In most cases, the property would otherwise be empty, and they are tasked with ensuring its safety.
Property managers can help with squatting issues as they can help stop unauthorised persons from occupying the property, which leads to the squatting issues that many property owners have to deal with.
Even with how important and useful they are, property management companies are better for the following reasons.
You Get a Better Property Appraisal
Every investor knows the overall value of the property or properties they invest in. They want to recoup this value (money paid for or invested in the property) with some profit on top, and this starts with determining the rental market value of the property. A property guardian West London would not be able to do this accurately because they will likely look at the value of properties around yours, but these comparable rental property metrics and statistics are not always the best way to value your property.
UpperKey, on the other hand, hires professionals to assess your property before entering into an agreement with you. They know what they are looking for and will therefore give you a much better and much more accurate rental market value.
Additionally, their experience managing similar products as well as qualified valuers help them come up with very accurate figures. They will give you the right rental market value by taking current rental market data and trends as well as future projections into account.
A secondary advantage of doing this is that you will attract the right tenant by placing the property at the right price on the market.
Since a property guardian London does not find tenants for you, they have no input on whether you get rent from the property. This is more so the case where they are guarding a vacant property before it is occupied or in-between tenants.
When you enter into an agreement with Upper Key, they become your primary tenant meaning they rent out your whole property and send you the money as soon as everything is concluded. This means you get a guaranteed income regardless of whether the property is occupied or not.
Once the initial six months has passed, the property management company will pay you monthly, but you will be surprised at the ease with which the rent is paid. Tenants might appear dependable on paper, but life happens, and people find it hard to keep up with payments or to keep paying them on time.
As a property owner, you can delegate the rent collection and any disputes that arise to the property management company. These companies are experts at navigating such disputes to ensure rent is paid on time. The guaranteed income scheme we have discussed above also helps with these headaches as you only have to let the property manager deal with them while you wait for the rent at the end of the month.
By entering into such an agreement, something that would not be possible if you opt for guardianship London, you avoid these headaches, lower your business risk by having a guaranteed income, and have added peace of mind because of both.
Tenant screening is a complex process, and property owners might spend a lot of time and resources vetting their tenants to ensure they do not have issues with them. Those with insufficient experience in real estate management might end up with bad tenants.
With a property management company like UpperKey, you do not have to worry about vetting tenants. The company becomes your primary tenant and then deals with people who rent the property from them on your behalf.
A common challenge you will face when you have bad tenants is getting them to leave. A London property guardian might not be able to evict a problematic tenant under certain circumstances, but a property manager has the Country Court behind them once they serve a notice of eviction.
However, they can avoid all this by using their experience, connections, and information to identify red flags. They can therefore protect your property and investment by ensuring:
They find tenants who rent for long periods
Minimal tear and wear on the property, although the property manager has to take care of that
They only rent to tenants who will not cause issues for them and you
Every tenant faces maintenance and repair issues from time to time. Things like broken appliances or broken taps are all emergencies that need immediate attention.
A property management company will take care of any repair requests put forward by the tenants. You can be assured that the works and repairs will be completed exceptionally because property managers typically have connections they can use to find reliable and trusted contractors.
Additionally, many property owners and property guardians London do not have the skills or experience to handle difficult emergencies. This can leave a negative impression on the tenants because it impacts their quality of life and the enjoyment and comfort of their rented property.
A property management company can handle these situations by hiring the right people for repairs quickly. This is in addition to doing the necessary inspections before occupancy to ensure these problems are less likely to come up.
You also get the benefit of not having to talk to your tenants at inopportune times. If an emergency happens at night or during the weekend, you know you do not have to deal with it because the property management company will take care of it.
In addition to saving you time, doing so establishes a practice and consistency so the tenants and the management company know what to do in case of an accident without you having to intervene.
Ensuring Long-term Tenancies
If you do not have long-term rentals, you have to deal with issues that crop up when the tenant leaves very frequently. These include cleaning the property professionally, changing the locks, cleaning or replacing the carpets, repainting the walls, making the required repairs, and then finding a new tenant for that property.
With a property management company like Upper Key, you do not have to deal with these issues because you hand the property to them, and they take care of this for you. They become your long-term tenant in this case.
Because they do not want to go through these issues themselves, they find better tenants who are more likely to rent for the long term. These are tenants who will take care of the property because they know they will be living in it for a long time.
If they can find these long-term tenants for your property, they help make it more desirable, which can make it easier to let in the rental market. Many people avoid properties that have numerous short-term tenancies. They think there is something wrong with the property and therefore avoid it.
Even though the property management company will pay for the vacancies, you are more likely to have a poor valuation when you decide to sell the property. Investors and buyers will use the high vacancy rates to show your property is less desirable, and thus provide a worse valuation than you would have had if you had lots of long-term tenancies and low vacancy rates that point to your property being more desirable.
Helping With Legal Compliance
As a landlord, you are responsible for lots of things related to property management, including conducting regular checks and being compliant with all legal requirements. Because they are only responsible for safeguarding the property, a property guardian central London is not incentivised to conduct these checks or keep you compliant.
However, a property management company will perform common checks required by the UK government which include:
Electrical inspections - Every landlord has to comply with set safety standards for electrical systems in all rented properties. Tests have to be conducted by a qualified and licenced electrician every five years and the report is handed to the tenants
Gas safety inspections - As with electrical systems, gas safety inspections have to be done regularly, and the landlord has to maintain proper inspection and safety records
Fire safety inspections - The property management company will also perform fire safety checks on your behalf. This will include ensuring all floors and properties have smoke detectors, carbon monoxide monitors are installed and maintained, as well as fire exit points are easy to access.
For these reasons, a property management company is a much better alternative to property guardian London
Many property owners do not consider a property management company when investing in real estate. Some also choose to use property guardians, especially if their properties are vacant. However, hiring a property management company like UpperKey is a great alternative due to the reasons we have discussed above.