Blog Posts

Does it cost more to manage a property if the rent is more?

Posted by - 2015-03-20 at 12:26 pm

Estate agents have historically worked on a percentage model which means they make money by charging a commission on the sale or rental price of the property. This model is also replicated in management where agents typically charge a percentage of the rent to manage a property but why would it cost more to manage a property just because the rent is higher? The commission model motivates agents to get the best price possible for the property. Landlords may well think this is advantageous but unfortunately it comes back to bite them when they ha...

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Boiler and Central Heating Contracts – Are they worth it?

Posted by - 2014-11-06 at 3:03 pm

In our experience definitely YES! All boilers require attention from time to time, even if it’s just to top up the water levels. There are sharks in our waters I’d like to think that most plumbers are trustworthy but we have all seen the rouge traders programs on TV and have seen how good, repairable boilers get condemned or are misdiagnosed costing hundreds of pounds. At least if the maintenance company misdiagnoses an issue, it will be at their cost, not yours. What questions should I ask when deciding which supplier I should select? All ...

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A solution for landlords paying property management fees

Posted by - 2014-10-16 at 12:34 pm

Property investment is an income investment like any other investment. The more you pay in fees, the less you have in monthly income. As a property investor, your primary concern is the performance of your investment and the fees and charges you pay can have a significant impact on your income. A landlord’s income from buy to let is dependent upon certain things, some he has no control over but changes in the industry now mean there are some that can be controlled. Costs landlords have little or no control over Interest rates: If the landlord...

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Holding deposits – How much should a landlord charge?

Posted by - 2014-09-29 at 1:33 pm

A holding deposit is what prospective tenants pay when they see a property, decide they want to let it but haven’t yet signed a contract either because the landlord needs to check their references or for other similar reasons. It is the landlord committing to let the property to the tenant and the tenant committing to let the property from the landlord, it encourages the landlord to take the property off the market. The deposit should be returned if the landlord is unable to let the property to the tenant and either all or a proportion of it ...

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Are you an amateur landlord?

Posted by - 2014-09-05 at 2:57 pm

The dictionary meaning of the word “amateur” include “activity as a pastime rather than as a profession” so I guess we can generally conclude that’s it’s someone who does not consider or treat his or her job as a landlord as a profession. We’ve come up with a few things that could help you identify if you are an amateur or a professional landlord. Do you….. Have a day job and only supplement with rental income. Complain when tenants have (legitimate) issues and wonder why they just can’t stop complaining. Wonder why you have t...

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Why are landlords still paying so much to manage their property?

Posted by - 2014-08-05 at 2:36 pm

With the average estate agent still charging up to 12% to manage a property, are landlords aware there are alternatives? Many buy-to-let landlords use estate agents to find tenants and manage their investment portfolio, with the average full management option costing the average landlord anything between 10pc and 18pc of the rent, so a rental property let for £1000pcm will cost the landlords £216 (inc VAT) per month. The agent may also charge fees for inventories, credit checks, check in fees, check out fees, agreements fees and the list goes...

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