A buy-to-let property may well be the biggest investment you make, and the largest financial asset you own – so it’s understandable that you will want to ensure that it’s being looked after.
Some landlords feel most comfortable with the idea of managing their own rental property, while others prefer to outsource this to a professional letting agency, but whatever decision you make, comes down to your personal circumstances.
Self-managing a property
Being a landlord is something that should be taken seriously and requires a lot of time and dedication. It can’t be done on a part-time basis if you want to ensure that you’re staying on the right side of the regulations and ensuring the satisfaction and safety of your tenants – it should be treated in the same way as running a business.
This means staying on top of the regulations and ensuring that your property meets the required standards in every aspect, as well as being meticulously organised when it comes to paperwork and finances.
Prior to tenants moving in, you’ll need to make sure your property is up to par in terms of weatherproofing, safety and accessibility, as well as in terms of furnishing and décor. This includes fitting smoke and heat alarms, and booking in for PAT and EICR tests, gas safety checks and a legionella risk assessment.
You will also need to create inventories and marketing materials, advertise your property, conduct viewings and select your tenants. Contracts will need to be drawn up, deposits placed in one of the three approved deposit protection schemes in Scotland, and all the relevant checks carried out on your chosen tenants to confirm their eligibility.
Once tenants are in place, you’ll need to book in regular inspections of the property, and manage the monthly rent collection, as well as checking on the latest legislations to ensure that you’re adhering to the regulations – things can change very quickly!
You should also keep an emergency fund set aside to cover any unexpected maintenance or repairs, such as a replacement appliance or a leak in the property, and be on hand to deal with any emergencies. It’s a good idea to build up a ‘little black book’ of reliable contacts, such as an electrician, plumber and roofer, so that you can fix issues quickly for your tenants.
When the time comes for tenants to move on, you’ll need to manage the move-out process, which includes checking the inventories and accounting for any repairs required, and returning the deposit. If there are issues with the tenancy, it can become complicated if eviction notices are required, and you may need to seek legal advice to ascertain your rights.
Using a letting agency
As you can see, self-managing a property is not an easy undertaking; it requires an abundance of time and dedication to ensure success. Many property investors are not full-time landlords; they have other careers or demands to focus their attention on, which is why letting management companies like ESPC Lettings [link to: https://espc.com/services/lettings] are such a popular choice.
A letting agency can offer a variety of services that can adapt your requirements: one such option is let only, where the agency will find a tenant for you and draw up the necessary paperwork, before stepping back entirely. Another option is a full management service, where the agent will take on all of the tasks highlighted above, to completely remove the obligation of day-to-day property management from the landlord.
This means that your property will be marketed in the most effective way, and you’ll have someone else on hand to conduct viewings and handle multiple enquiries; in today’s rental market, especially in Edinburgh, it’s not uncommon to receive hundreds of enquiries per property, so you may want someone else to handles these on your behalf!
A letting agent will also vet tenants and do all the necessary reference and background checks, as well as handling the deposit, inventories and move-in process. Once tenants are in situ, the agent will be the point of contact, providing a 24/7 service to deal with out-of-hours emergencies, ensuring you have peace of mind that everything is being taken care of. The agent will also ensure that the property remains on the right side of the regulations, and can make dealing with disputes or even evictions much smoother.
A letting agent can even help you before you’ve purchased an investment property, by advising on the most popular areas to buy, or what kinds of properties have been in high demand with tenants.
Some might argue that a letting agent is an expense, but it all comes down to how much time you have available to dedicate to being a landlord, and how valuable that time is to you. Just marketing a property and finding tenants can take several weeks, before you need to take on the general day-to-day management, so many landlords prefer to look at a letting agent as an investment for their own personal time, as well as peace of mind.
