What are the benefits of using a property management company in London?

London has consistently outperformed the rest of the UK rental market, and according to Rightmove’s latest rental tracker, rents in the capital are now nearly double the national average which demonstrates the UK’s capital’s continued strength as a reliable long-term investment location.

Driven by high rental demand and limited housing supply, investing in a rental property in London can be a rewarding long-term strategy.

Though high rental yields and attractive capital growth are sought-after benefits of investing in London properties, achieving these desired results requires local knowledge, expertise and on-ground presence. From legal compliances to other lettings and property-related requirements such as maintenance, repair works, furnishing or even tenant disputes, the services of a one-stop property management company cover everything.

What does a property management company do?

A seasoned property management company knows every detail involved in effectively running a property for its owner or landlord. Their job includes everything from finding the right tenant, coordinating all the legal and compliance requirements to rent a property, and even holding tenant deposits in an approved scheme. Additionally, an experienced agent or property management company that is an active member of trusted industry bodies such as ARLA Propertymark complies with rules that ensure high service standards.

Renting a property in London is subject to several safety certificates, such as gas, fire, electricity, etc., which such companies efficiently handle. They will also market your property on listing websites and advise you on the best practices to maximise returns.

Key benefits of using a property management company in London

Tenant rights in the UK are well-guarded by law, and for a city like London, where rents are steep, tenants expect the highest quality service from their landlords. Here’s how you can benefit from the services of a reliable property management company.

i. Tenant screening and background checks

Vetting potential tenants for previous misdemeanours or payment lapses is crucial to avoid a bad experience, and management companies provide this key service.

ii. Timely maintenance and repairs

Whether fixing a broken tap, busted boiler, or any other maintenance issue, the company will promptly address all repair works. Additionally, since they regularly work with trusted contractors and technicians, you can be assured of superior work quality and cost-effective outcomes.

iii. Local market insights

As local property specialists, these companies conduct thorough rent analyses. They can guide you on the most cost-effective ways to maximise rental yield and negotiate with potential tenants.

iv. Rent collection and support

Timely rent collection and tenant support are essential for a successful lettings experience. Most leading management companies offer 24/7 support to address any tenant-related issues.

v. Adherence to the Renters Rights Bill

The coming Renters Rights Bill, which is soon to become part of UK law, will bring more transparency within the private rental sector making renting a property in the UK fairer for all.

How property managers improve tenant relationships

Well-paying tenants in affluent London neighbourhoods expect top-notch service from their landlords. Whether it is a minor repair or a serious dispute, a leading property management company will ensure round-the-clock support for tenants. This promptness in addressing issues and communicating regularly with tenants helps build trust, resulting in longer tenancies and more stable rental income.

When should you consider hiring a property manager?

Instructing a property management company is important when you have invested in a rental property and want to earn consistent returns. Here are some situations where engaging a property manager is advisable:

i. First-time landlord

You will require direction and guidance to navigate the whole process if this is your first time property purchase as a landlord. The laws surrounding property ownership and letting can be onerous and an experienced letting agent will take on all the paperwork needed to ensure your let conforms to the law and provides protection for all parties.

ii. Overseas landlord

Properties rented by landlords residing outside of the UK may find it burdensome trying to manage the property themselves from far away. Time differences can also make it difficult to act quickly to a maintenance emergency.

iii. Portfolio management

Landlords with multiple properties require professional assistance managing various tenant requirements.

iv. Maximise rental yield

Whether updating the layout or adding new furniture, you will get expert advice and support to increase rental yield.

If you are hoping to attract a lucrative corporate tenant, then you be aware that 95% of companies will insist on professional property management to be in place for their executive employees.

Find out more about our London property management service

Choosing the right property management company in London

Picking the right one in a city with thousands of property management companies can be time consuming. While the service cost is a consideration, you should also consider the company’s experience, client reviews and the range of services it offers before deciding. Speaking with different companies to understand their best offerings is advisable. Also, not every real estate agent is equal. A lot of London estate agents focus on sales and their lettings department is a side-line meaning their staff can be spread thin when it comes to looking after property maintenance and checks. Look for an agent who has a dedicated property management department.

At Benham and Reeves, we offer a full management service that covers everything from pre-tenancy preparations to vacant property management, tax return services for overseas investors and much more. Backed by an experienced management team, our 21 branches across London ensure you get all the necessary guidance and support. Contact us to learn more about property buying and lettings in London.