When self-managing landlords transfer their properties to us, it’s usually for the following reasons: they feel anxious that they’ve not inspected the property recently… or the tenant reported a few problems a while back and the landlord never really sorted them out… or the tenant is in arrears and the landlord doesn’t know what to do… or the landlord feels awkward approaching the tenant. LANDLORDS! Don’t bury your head in the sand! In 2020 do the following things in order to avoid 5 common problem areas:

Mistake #1 – I can’t believe the number of landlords who don’t do this. It is such a crucial part of property management. Inspect your rental property – landlords should do this several times a year. If you feel awkward then Proudhouse can do this for you – you don’t need a management service! Regular inspections give you peace of mind over maintenance issues, guards against neglect and builds a rapport with tenants – this makes other aspects easier to deal with.

Mistake #2 – don’t let those little niggles and snags build into bigger problems. Sort them ASAP. So mistake #2 is not maintaining your property. Remember, if you’re not inspecting regularly, then many tenants will think a landlord (or agent) doesn’t really care and then many issues will go unreported. Proudhouse have an in-house team for maintenance and can help with minor snags all the way through to refurbishments, kitchen refitting and project management.

Mistake #3 – Take Action with Arrears – many well-intended landlords start a slippery slope when being lenient with tenants who can’t or won’t pay rent. The key is to create a strategy that works for everyone – a repayment plan and/or a timescale with a clearly defined ultimatum, which can be backed up with knowledge of the Housing Acts and repossession proceedings. Proudhouse have 2 in-house bookkeepers who deal with rent collection. Relative to the total rent we collect, our arrears total is very small – and almost of all of this arises from tenants who originally transferred to us via landlords who didn’t properly reference their tenant or manage the initial default.

Mistake #4 – Carry Out A Rent Review – a small rent increase, in line with market value, every year is far better than sporadic big jumps every few years. Remember – everything is going up in value over time (generally speaking). This includes your costs, overheads, fees, insurance, etc. Don’t willingly reduce your rental yield margin by not putting the rent up. Trust me, a small modest increase, every year will be acceptable to the tenant – professional tenants will understand. Just don’t be an idiot about it! 2 – 3% increase should suffice assuming your property has been tracking market value in previous years. Proudhouse have a rental value tool that averages all our comparable properties factoring in floor area, bedrooms, and other features such as off-road parking etc and creates a report to help guide and justify the rental increase.

Mistake #5 – Create a Property Inventory – If you’re reletting an unfurnished property then you still need and inventory and schedule of condition! Otherwise how do you safeguard against unauthorised alterations/decorations? An inventory should be fully indexed, (with page numbers/numbered items), with a condition statement. Our document also includes a cleanliness statement. Proudhouse normally have 150-200 photos archive to support the inventory document. And the document needs to be signed and agreed by the tenant. Our documents are typically 30 – 50 A4 pages long. So if your existing “inventory/schedule of condition” is just a list of items over a couple of pages then you’re probably not going to win any deposit disputes!

Summary – this work is “bread and butter” for our team. However, many self-managing landlords overlook to do these. We know you’re busy – and sometimes it’s awkward or even confrontational. If you want help then click the button below and fill out the form – you won’t be given a hard sell! We’ll contact you and ask you what you want help with. 01935 388456

Article written and authored by Chris Chambers, Business Owner, Proudhouse Property Management, Copyright 2019.