Choosing the right property manager can significantly impact the success of your property investment portfolio.
Here’s a comprehensive guide to help landlords make informed decisions when selecting a property management company.
1. Check Credentials and Regulators
Start by visiting the company’s website to verify their credentials. Look for their registration with a recognised regulator like SafeAgent, which is the company that regulates us here at Rocket, or their membership with a property redress scheme such as the Property Redress Scheme (PRS) or The Property Ombudsman.
These affiliations make sure that the company adheres to industry standards and provides client money protection insurance, safeguarding your rental income against misuse.
2. Understand Rent Collection Processes
A crucial question to ask is how quickly the company processes and pays out rent. Some companies might take weeks, while others, like Rocket Property Management, ensure timely payments within a few days.
Additionally, enquire about the property management system they use. At Rocket, we offer an online portal where landlords can track rental payments, view property documents like tenancy agreements, gas safety certificates, and monitor maintenance issues in real-time.
3. Assess Property Maintenance and Repairs Handling
Effective property management is not just about collecting rent but also about maintaining the property.
Ask potential managers about their process for handling maintenance issues, from small repairs to emergencies like leaks or fires.
Make sure they have a reliable network of contractors to handle various property needs, from plumbing to electrical issues.
Regular property inspections are also essential - find out how often they visit the property and whether they provide detailed inspection reports.
4. Communication and Transparency
Communication is key in property management. Ask your potential property manager how they communicate with landlords - whether through email, phone, or more immediate platforms like WhatsApp.
A good property manager should keep you informed about important updates and provide transparent communication channels. Also, ensure they document all significant interactions, particularly those involving councils or legal matters, through emails to maintain a clear record.
5. Review Fees and Terms
Management fees can vary significantly, from a flat monthly rate to upfront charges for lettings and additional administration fees. It’s vital to understand all costs involved.
Letting fees will generally range from 6-12% and property management fees are usually between 4-6%. At Rocket, we charge a flat fee of 10% plus VAT across the board for lettings and management.
Be vigilant of hidden charges, such as contractor commissions, where some agencies receive a percentage of fees paid to contractors for maintenance work. This practice can significantly inflate your costs.
At Rocket Property Management, we do not charge contractor commissions, instead opting for transparent pricing.
6. Tenant Selection and Rent Reviews
Enquire about the company’s tenant selection process and the referencing services they use. A thorough vetting process can save you headaches down the road.
Also, ask whether the property manager conducts regular rent reviews and provides annual market reports. This practice is essential for adjusting rents in line with market trends to maintain a profitable property investment.
7. Additional Considerations
Make sure the property management company is advertising your property on all major platforms like Rightmove, Zoopla, and OnTheMarket, to reach a wide audience and whether they are making the most of what the platforms have to offer.
Also, ask if they specialise in the type of property or tenant you are targeting, such as student accommodations or high-end properties.
Choosing the right property manager involves more than just finding someone to collect rent. It’s about partnering with a company that aligns with your investment goals, communicates effectively, and acts in your best interest to maximise your property’s potential.
These are all qualities we encompass at Rocket, so if you want to talk about your property management needs, don’t hesitate to get in touch or book a meeting with our co-founder, Ben Temple, by clicking this link here.
