The thought of being able to live on passive income alone is a dream come true for many of us. And for some investors with multiple properties this is indeed their reality.
However, the road to getting there can have a few bumps in it. There are, after all, legal stipulations, local government regulations and tax guidelines to navigate your way through.
Thankfully experience can help make the process a lot smoother. So too can expert help in the form of a property manager. Read on to find out how to manage a property portfolio:
The more properties you have, the more need you have of a system to keep everything in its rightful place and to make sure it’s accessible when you need it.
That means ensuring you have paper and (especially) online copies of all inventories, gas certificates and deposit/rent receipts etc. One of the best ways to do this is to use online management software. That way you can also key in dates for crucial flat inspections, inventory checks etc.
Another good reason to use management software is that companies who supply this will often notify you of any changes in the law that may affect you. This is an important add-on to any management package, considering the number of changes there have been for landlords in recent years.
The easiest way to make sure you are complying with legal stipulations is to keep up with landlord obligations as far as the government and your local council is concerned.
Most landlord organisations such as the National Landlords Association (NLA) and the RLA (Residential Landlords Association) communicate regularly with members, especially with respect to changing legislation. There are also plenty of landlord forums out there where you can seek advice from other landlords on property management issues. Some of the main legal stipulations include:
Ensuring you abide by health and safety regulations in terms of fitting working smoke alarms and carbon monoxide detectors if necessary.
Furnishing new tenants with a copy of the Government’s How to Rent guide.
Carrying out rent checks (only for landlords in England). This is to ensure that any prospective tenants from overseas have the correct paperwork to legally live in the UK.
Placing a tenant’s deposit in one of the three government-approved Tenancy Deposit Schemes, and informing them of this.
How to manage a property portfolio is something every landlord learns to do their own way. But it’s something they have to learn fast – especially when each property they add to their portfolio increases their workload. Routine duties for landlords involved in property investment include:
Having to find tenants, undertake reference checks and carry out an inventory inspection and safety checks – and all before the tenant even enters the property.
Dealing with maintenance issues quickly and whenever they arise. Not only does a fast response keep tenants happy, it also means many repair issues are prevented from getting worse (and more expensive).
Learning to be a skilled negotiator and referee. Issues will occur in shared properties and it’s up to you as landlord to make sure your tenants are happy and feel safe. If that means sorting out a dispute between two of your tenants then so be it. If it’s between yourself and tenants then aim for as fair a result as possible.
Certainly, if you want passive income (i.e. that you don’t have to work for) then you’ll want to bring in a property manager to help when building your property portfolio. You might also consider getting in an accountant to help you with tax advice and generally keeping on top of your income and receipts.
For information on how to manage a property portfolio and how we can help, contact The Property Shop team today.
Do you have any questions about the topic above? Our team of experts is here to help in answering any query you may have.
Fueled by his desire to be the best, most reputable estate and lettings agent in town, Steve has spent his career cultivating The Property Shop. Steve prides himself on his authenticity, honesty, and knowledge-base which is emulated by The Property Shop and his team.
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