Is Full Property Management Worth It for Landlords in Wales?
Owning a rental property can be a rewarding investment, but managing it properly involves much more than finding a tenant and collecting rent each month.
Maintenance, inspections, rent collection, compliance, administration and unexpected problems all require attention throughout the occupation.
For landlords with busy careers, those living away from their rental property, or investors building larger portfolios, full property management can remove much of the day-to-day workload involved in being a landlord.
So, is paying a letting agent to fully manage your property actually worth it?
What Does Full Property Management Include?
Services vary between letting agents, so landlords should always check what is included in their management agreement.
A comprehensive property management service will typically assist with areas such as:
- Marketing the property and arranging viewings
- Applicant referencing
- Setting up the occupation
- Rent collection
- Monitoring rent payments and arrears
- Managing maintenance and repairs
- Communicating with contract-holders
- Arranging routine property inspections
- Monitoring property documentation and compliance
- Coordinating contractors
- Managing the end of an occupation
- Keeping the landlord informed throughout
For many landlords, the biggest advantage is having one professional point of contact to manage the property day-to-day.
Property Management in Wales Requires Specialist Knowledge
Managing rental property in Wales is different from managing property in England.
The Renting Homes (Wales) Act 2016 introduced significant changes to residential renting in Wales, including occupation contracts and different terminology, processes and landlord obligations.
Landlords also need to consider areas such as Rent Smart Wales requirements, deposit protection, gas and electrical safety, smoke and carbon monoxide alarms, property condition and other legal responsibilities.
The regulatory environment is one reason professional property management has become increasingly valuable.
A good managing agent should have systems in place to help landlords keep on top of the administration surrounding their properties.
Maintenance Can Become a Second Job
Maintenance is probably one of the areas where landlords notice the benefit of management most.
Even a relatively straightforward repair can involve several stages.
The issue needs to be reported and assessed, a suitable contractor contacted, access arranged, the landlord updated where necessary and the work followed through to completion.
Then there are emergencies.
A boiler breakdown, leak or electrical problem doesn’t necessarily occur during normal working hours.
For someone managing one property, these issues may only arise occasionally. For a landlord with a growing portfolio, however, maintenance can quickly become a significant administrative burden.
Professional management allows the agent to coordinate much of this process on the landlord’s behalf.
Regular Property Inspections Matter
Once a property has been successfully let, it shouldn’t simply be forgotten about until the contract-holder eventually leaves.
Routine inspections let you monitor the property’s general condition and spot potential maintenance issues.
A small leak or developing damp problem, for example, can become considerably more expensive if it goes unnoticed for a long period.
Inspections can also provide landlords with a documented record of the property’s condition during the occupation.
For landlords who don’t live locally, having somebody available to regularly inspect their investment can be particularly valuable.
What Happens When Rent Isn’t Paid?
Most occupations will hopefully progress without significant payment issues.
However, landlords need a clear process for dealing with rent arrears when they do occur.
Landlords should identify missed payments quickly, not weeks or months later.
A professional management service should monitor rent collection, contact the contract-holder when payments are missed and keep the landlord informed if the situation continues.
If formal action ultimately becomes necessary, having accurate rent statements and a documented communication history can also be important.
Full Management Can Help Landlords Scale
Managing one rental property yourself may be relatively straightforward.
Managing five is different.
Managing ten, twenty or more properties can effectively become another business.
This is particularly relevant for landlords who want to continue acquiring property.
Every additional investment creates another set of rent payments, maintenance requests, inspections, documentation and administration.
Professional management systems can help landlords grow their portfolio without increasing their personal workload at the same rate.
Is Property Management Worth the Cost?
There isn’t one answer for every landlord.
If you have plenty of time, understand the Welsh rental sector and enjoy personally managing your properties, self-management may suit you.
But don’t view management fees purely as an expense.
Consider what you’re receiving in return.
You’re effectively paying for the time, systems, administration, experience and infrastructure required to operate the property.
For many landlords, the question therefore isn’t simply:
“How much does property management cost?”
A better question is:
“How much is my time worth, and how involved do I want to be in managing my investment?”
Property Management Across South Wales
At Conrad Estate Agents, lettings and property management are a major part of our business.
We work with landlords ranging from those with a single rental property through to experienced investors with larger portfolios.
Our property management services cover Barry, the Vale of Glamorgan, Cardiff and wider South Wales, with the aim of making property investment as straightforward as possible for our landlords.
Whether you’re preparing your first property for the rental market, already have an established portfolio or are considering changing managing agents, we can discuss the most appropriate service for your circumstances.
Looking for a Property Management Agent?
If you’re spending too much time dealing with the day-to-day management of your rental properties, it may be worth considering whether full management would work better for you.
Contact Conrad Estate Agents to discuss full property management, transferring an existing managed property or bringing a larger portfolio under our management.
