Residential Property Management made easy

Renting out your London property can be a very handy second income. For professional investors with multiple properties it can even be your main source of revenue. While the benefits of letting your property are obvious, the hassles that can come with it are less so. Many landlords use a management service so they don’t have to deal with maintenance related issues directly when they pop up. We spoke with one of our lettings managers to get the inside track on all things property management.

Hi Natalie, tell us about your role at Benham and Reeves Residential Lettings.

As Key Client Manager, my portfolio consists of clients with large portfolios and our growing block management department. I work closely with my clients and often support them by managing contractors such as interior designers, solicitors or third-party contacts. The role requires being comfortable in speaking with people from all walks of life, adept at forward planning as well as being reactive, and thinking on your feet when required.

Who are your clients, and why do they use your service?

Our clients include landlords with large investment portfolios, trust companies, residential management companies and freeholders of various buildings throughout London. We also work with high net worth individuals who require their own personal properties to be maintained when they are not in residence.

Every client has their own requirements. Investor landlords generally want to collate their properties under one umbrella with one point of contact that they can rely on. Often trusts are unable to easily visit their properties, but want to ensure that their investments are being maintained in the best possible way, with regular reports.

Residential management and right to manage companies and freeholders can often end up in a muddle, due to the various legislation involved in maintaining a block. There can be disagreements over what to prioritise and the payment of service charges can become stressful so most clients quickly realise that the expense of hiring an agent is a wise investment.

In response to client requests, we also offer a ‘vacant’ management service for overseas customers who have their own property in London. These individuals are looking for a local agent who can take care of any bills, visit the property on a regular basis in order to check there have been no leaks or other damage while the property is empty, and manage such scenarios if and when they occur.

Describe a typical day in property management

There is no such thing! All I can say is that things are never boring. On one day, I could be involved in arranging repairs on anything from a washing machine to a roof, meeting clients for a tour of their investment, discussing deposits with tenants who have vacated, putting together a sales pack for a landlord, liaising with estate managers and porters over major maintenance issues, calculating projected service charge budgets or putting together a refurbishment specification for tender and approval. It’s varied to say the least!

What services do clients typically ask you to help them with?

We’ve been asked to assist with day-to-day things such as cleaning, furniture replacement, arranging electrical inspections, carrying out gas safety certificates, organising plumbing connection checks, essentially various running repairs which keep a property in good order and compliant throughout various tenancies.

However, often questions veer from simple maintenance to financials. In conjunction with our dedicated accounts department, we often answer queries relating to service charges, liability for utilities during tenancies and void periods, collating information for client’s accountants to explaining the different types of insurance available in the UK.

Along with this, there are a myriad of other requests that are often directed to the property managers, such as liaising with solicitors during any property related matter, organising access for sales, advising on responsibilities under the Landlord & Tenant Acts, and serving appropriate legal notices as and when required.

What would you say is the difference that Benham and Reeves Residential Lettings’ property management services offers to its customers?

It can be summed up in one word – personal. As a company, we strive to tailor our service and approach to what a client needs, rather than simply working to a script. In order to do this, you have to develop a good working relationship with your landlords and tenants – although letting a property is a business transaction, emotions can often override logic and the ability to remain calm, listen and work together to resolve a situation with minimal cost is essential.

What’s the most unusual request you’ve ever had from a client?

We have many varied requests from tenants, including one asking me once whether a landlord would agree to soundproof the bedroom!

Client requests usually tend to be more modest, such as arranging redecoration or organising an extra set of keys for a relative to hold. However, there was an incident once when a landlord did ask that a room in a property they were letting be kept locked. While an unusual request, keeping an area off limits for storage is not unheard of – little did the tenants know that the landlord intended to use the room as a ‘base’ when they were back in London and happily walked in one evening, past the tenants watching TV announcing he would be staying for a week. The situation was delicate, but the landlord did come to understand that once the property had been let, he did not retain a right to walk in and stay there whenever they wished.

On a slightly darker note, I have also been asked to assist in taking over properties from other agents where it subsequently turns out the deposit has been absconded with, the landlord has not received rent already paid, the tenancy agreement is wrong, misleading or alleged to be fraudulent and the client is unaware of the ramifications of such problems. These scenarios can be difficult to handle, but can often be resolved with effort from the agent. This really demonstrates why an ARLA-affiliated agent should always be an utmost consideration when choosing an agent.

What’s the benefit of using a property management agent if you’re based overseas?

There are many excellent reasons for using a local agent, the best of which is staying sane. If you are based overseas, there is the inevitable time difference, which can mean that delays to repairs occur or you end up with an angry tenant calling you at 3am local time, which is not conducive to a restful night’s sleep. You are unable to inspect repairs, and don’t have a practical way of vetting any contractor to ensure they have correct insurance and training.

Another example would be if you wished to ask a question to a block manager relating to service charges and payment. You will often find their office shut and it can take some time to get answers via email; by which time you may find solicitor charges have accrued for late payment. Fortunately at Benham and Reeves Residential Lettings, we have locally employed staff in each of our international offices, who liaise with the London-based property managers. We are able to work geographically in a seamless way to carry out day-to-day activities leaving clients with free time to concentrate on their own lives, secure in the knowledge that their investment is being looked after. I often say to clients that, as the saying goes, ‘no news is good news,’ and my ultimate goal is that you should never hear from me!

What’s the lettings market like at the moment, and what advice would you offer to someone thinking of renting out their property with Benham and Reeves Residential Lettings?

The London rental market continues to go from strength to strength, and we’ve had a fantastic start to the New Year. With many new developments rolling out, we are already receiving a record number of enquiries particularly in West and East of London plus parts of South East London which saw huge regeneration during 2014.

Any early period of uncertainty in the sales market due to the coming elections will stimulate the lettings sector as many more people turn to renting while they await the election outcome, this is good news for investors particularly with so many new builds rolling out properties at the same time. More tenants around means quicker lets.

Quicker lets won’t necessarily mean increased rents though. However, investors are able to maximise yields by buying properties on the fringes of central London where transport links are good and stamp duty are lowest. The longer term outlook is one of stability and Landlords should take advice from their agent when considering a rental prospect.

London’s private rental sector is still growing and now accounts for 40% of households and is projected to rise to 50% by 2025 according to the Royal Institute of Chartered Surveyors. This can only be positive news for buy-to-let landlords who own a rental property in London in 2015.

If you own a property in London which you are considering renting out, we’d encourage you to do your homework before choosing an agent. They should have the experience and local knowledge to manage your property successfully, and Government-recognised accreditations are vital.

If you are based overseas, our international offices work closely with our London-based property managers and we find our clients benefit hugely from having a local property agent, working in the same time zone.

For more information on our property management service and how it can benefit you, please email us or phone 020 7319 9780 for more information.