Six Simple Questions you can ask Landlords who are Tempted to DIY
Tenancies that are self-managed by investors appear to go pear-shaped significantly more often than those managed by a professional – at least in our experience as insurers.
However, it can be tricky trying to persuade landlords that it is worth their while investing in professional management.
Here are a few questions which might help you to have a discussion with them:
- Could you bring yourself to chase rent from a family or person experiencing hard times and, if necessary, to evict them – even putting children out onto the street?
- Are you well informed about tenancy legislation, good at keeping records and confident in your ability to stand up in a tribunal and argue a case?
- Do you feel comfortable with a tenant having your phone number and being on call 24 hours a day even if you’re overseas or on holiday? Are you available to supervise trades people, at short notice, if required?
- How will you find out if tenants are who they claim to be and whether they have previously been evicted or have a poor rental history?
- Will your landlord insurer cover you if you self-manage – and, if so, will the premium rise as a result?
- How much will you save, after tax, by managing your property yourself? Once the potential stress is taken into account, is your time worth more, or better spent, on other priorities?
Asking the above questions will help investors to understand what it is a Property Manager can do for them and the benefits that go along with choosing professional management services versus self-management.
Executive General Manager
EBM Insurance Brokers’ – RentCover division