Before deciding between managing your property yourself or hiring a professional firm, landlords and investors should consider a few key points. The question of whether you can manage without professional help comes up often. In principle, self-management is always an option, but for maximum return on investment, working with a professional who effectively cares for and protects your assets can be more attractive. However, if you have experience in managing rental properties and can commit the necessary time, looking after it yourself is worth considering.

Get the full picture before deciding

Before you make up your mind, it is important to be fully informed about both choices and to look at your individual situation. Managing a single-family home is very different from managing a large portfolio or a fully let multi-family building.

There are many different ways to learn about property management and the local rental market. These include courses, seminars, blogs, trading experiences with other property managers and networking with experienced people.

However, working with a professional management company offers a wider pool of knowledge, experience and resources. Property managers usually understand the market better and more deeply than individuals. Their expertise makes it easier to value your property, as they know how to set rents and attract the best tenants. A professional manager can help you find qualified tenants, minimising the risk of unpaid rent or damage to your home, which protects your wealth.

Errors in self-management often happen due to oversight or lack of knowledge. Professional property managers have already learnt from these mistakes, have the right infrastructure and know-how, and use established processes based on vast experience. They have application forms, tenancy agreements and criteria checked and approved by specialist solicitors. With a professional property manager, you avoid accidental breaches of current laws or tenant protection regulations.

Property managers know the relevant laws for everything to do with property and handle all legal aspects if a dispute ever arises.

Professional property management or self-management: optimising returns

It is vital to treat rental properties as a business, even when managing them yourself. A property manager always acts commercially and looks at every decision from the perspective of yield.

• Less vacancy: professional property managers have more extensive marketing tools and resources to present your home or flat in the best light and let it to solvent tenants. Here, managers benefit from the size of their portfolio, which significantly reduces marketing costs.

• Lower tenant turnover: by building relationships with your tenants, managers can defuse conflicts faster and look after tenant concerns, leading to longer tenancies.

• Consistent rent collection: a professional property manager ensures rents are paid on time and actively chases arrears, minimising the risk of lost income.

• Lower running and maintenance costs: many suppliers (including electricity, water and internet) offer volume discounts to property management companies, which can lead to significant savings on running costs. Framework agreements with caretakers and contractors lower maintenance and repair costs.

• Professional advice and know-how: because of their large management portfolios, property managers must always stay up to date with regulations, technology and best practices. As a client, you benefit from this deep expertise.

While professional property management involves monthly fees, the benefits and the savings made elsewhere have a positive effect on your property's yield. In addition, property management fees are often tax-deductible.

The property manager also takes care of the often tedious service charge accounts for tenants and the many queries that follow. You can also be sure that a professional manager knows exactly which costs can be passed on to tenants, so you do not carry an unnecessarily high cost burden as the owner.

You should also bear in mind that managing property can be stressful. Tenant issues can arise at any time of the day or night and must be addressed directly depending on the severity. The benefit of a professional property manager is that they act as a buffer between you and your tenants.

What is more cost-effective?

If you manage the property yourself, there is a risk of placing a bad tenant who does not pay and causes damage. Costly evictions and repairs could be the result. When hiring a professional manager, you might worry that they will see your property as just one of many, viewing its emotional value differently than you do. However, thorough research and selecting a reputable management company can build trust and ensure your concerns are properly addressed.

At best, you can successfully manage your rental property yourself without tenant issues or lost rent. However, managing multiple properties on your own is complex and time-consuming. Professional property management achieves the same results without you needing to get actively involved.

Conclusion

Making the right choice requires thorough research, talking to other landlords and weighing up the costs and benefits, whether you decide on self-management or want to hire a professional company. At Theo, we are always here to talk about our professional property management services or to offer you extra resources through our Portal.

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