Sounds great doesn’t it? You hire a property management company to manage the tenants in your buy to let property investment. You do not need to spend any time on this at all. But is it really as great as it sounds?
Hands Off Investments Are Becoming More Popular
So you have made an investment in a property and you don’t want all of the hassle that goes with managing it. This makes a lot of sense. Property management can be a real headache and there are often problems that are unpredictable and unavoidable.
Boilers break down in the middle of the night and the tenants are on the phone to you screaming. Other household appliances break down and need repairing or replacing. It is no wonder that a lot of investors choose a property management company to take care of these things for them.
Property management companies will tell you that you are getting the best of both worlds. The benefits of a monthly residual income, without any of the hassles of being a traditional landlord at the beck and call of tenants around the clock.
Free Your Time
If you are looking to build a good property portfolio (and you should) then having the time available to do this is essential. You do not want to be a 24 hour landlord dealing with the mundane when you should be looking for your next property.
Even with one property you may find that being the landlord can be a full time job. What if a tenant leaves? You will want to ensure that a new tenant is found very quickly. Do you have the time and resources to do this?
A letting agent will be far more likely to find somebody that is ready to rent in your area than you will be able to alone. Also they will have access to trusted local trades people who can do all of those repairs for you. Your time is critical to your success.
Is It A Good Idea To Go Totally Hands Free?
Well even when you take the agents fees into account you can still make a good profit and residual income if the property is in the right location and there is strong rental demand.
What is not a good idea is to leave this all to an agent to decide. You need to know what the rental yields are in a particular area before you commit to a property purchase.
Some unscrupulous agents have inflated these rental yields and unsuspecting investors have purchased properties in the wrong locations and lost considerable money.
Talk to other investors that have used a particular agent to see if they are on the level and perform your own due diligence in an area before investing in a property and you should be safe.