Prestons Home Rentals Answers
| Do you have an in house Chartered Accountant? | Yes |
| How do you market your properties? | Web, Office, Media, Corporate Clients |
| Do you have different departments? | Yes |
| Do you have a town centre office? | Yes |
| How long have you been established? | over 15 years experience in management/lettings |
| Do you have fidelity bonded client accounts? | Yes |
| Do you have a financial controller? | Yes |
| Do you have a dedicated marketing department? | Yes |
| Do you have translation services? | Yes |
| Do you have your own maintenance department? | Yes |
| Do you have your own inventory clerks? | Yes |
| Do I have my own point of contact? | Yes |
| Do you offer No Let No Fees | Yes |
Successful property management isn't easy. However if the agency is well organised and the right people are doing the right jobs, you wont have a problem!
Letting Example
| Your interest repayments are | £500.00 |
| Insurance Cost | £20.00 |
| A maintenance fund, say | £30.00 |
| Gas & Electric Certificates | £14.42 |
| Total Cost |
£564.42 per month |
The above cost is fixed and as long as you own the property is there to stay! If a poor agent is managing your property, he will not let it, or at best let it three months down the line! Using the above example, the property will make you a loss of £564.42 per month.
A good agent will have a small-unoccupied period at the start of the tenancy, normally two weeks, however future lettings should be back to back. Therefore the loss should be minimal and only at the initial letting stage.
Using the table below look at the commission differences below and judge for your self whether the cheap agent at 9% is value for money. That's not to say all agents who charge 9% are poor, however the level of fees charged by an agency will reflect the service received. The analogy "you get what you pay for" is true in all cases, property management included.
Management fee differences based on rent received over 12 months
Management fees
| Low | Low/Medium | Medium | Medium/High | High | |
|---|---|---|---|---|---|
| Percentage | 9% | 10% | 11% | 12% | 13% |
| Annual Fee | £540 | £600 | £660 | £720 | £780 |
| Fee Difference | £0 | £60 | £120 | £180 | £240 |
| Loss 3 Months | £1693.26 |
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Looking for a Property Management Service to Handle your Letting?
When you decide to use an agency to rent your investment property, your thoughts will revolve around cost, the cost of management fees, repairs, interest repayments and insurance etc. A cost that most prospective and existing landlords sometimes forget, are the periods when the property is vacant commonly known as "voids". This cost is tangible and just like the obvious cost above will not go away and will affect the performance of your investment.
The key to a successful property portfolio is high occupation. Simply put, to install a quality tenant quickly and maintain occupation thereafter. The way to maintain high occupancy is purely your choice of agency.
Agents who operate from a home base or small office offer very little in terms of exposure, marketing and do not have independent departments dealing with the various other issues for example accounts, marketing and rental processing. This would be like the captain of an aircraft serving tea and coffee to the passengers whilst flying the aircraft; I doubt he could do both at the time successfully. These agents may purport to offer you the best service available, however in reality it's unlikely! The result being your property will be let later rather than sooner and the management will be poor at best.
Always look at the recourses of an agency and ask plenty of questions about their various systems. Details of our service and the costs involved can be seen on the left. If you have any more questions about letting your property, management and fees, contact us. We'll be happy to help.
