Property management covers everything involved with renting out a property, from finding a tenant, to completing annual safety checks. 

Landlords have to build up a range of skills and practices to make sure that all the details are covered and their legal obligations are met. Building up this knowledge can feel daunting, especially if you’re renting out a property for the first time. 

Read our landlord tips below to make sure you’ve got everything covered.

 

Understanding your role as a property manager

Property managers take care of all the day to day duties involved with renting out properties to tenants. Key responsibilities for property managers include:

• Advertising the property
• Vetting potential tenants
• Setting up leases/tenancy agreements
• Maintaining the property
• Collecting rent
• Ensuring all the correct insurance is in place
• Adhering to current legislation

When renting out your house or flat, you must ensure that the property is a safe and habitable space, and that you’re working within current legislation. This includes ensuring your safety certificates are up to date, and that your tenancy agreements cover yourself and your tenants properly. If not, you could open yourself up to legal disputes and/or put your business at risk through loss of earnings.

Should any disputes arise, there are many things that you’re responsible for as the property manager and owner. This can include crimes taking place on site, environmental hazards (including mould and pests), and injuries to tenants or others in and around the property. 

To protect yourself, you should maintain your property to high standards, follow current legislation, and adhere to everything that’s set out in your tenancy agreement.

As a landlord, you can manage your property yourself, or you can work with an experienced letting agent, like us. There are many benefits to this, especially if you own more than one property. It frees up your time, it allows you to invest remotely, and it ensures that your tenants are fully vetted and well looked after. We’ll keep you up to date with current legislation and ensure that your property is always safe for tenants.

 

Legal obligations and compliance

Landlords have a range of legal obligations, and these can change or be added to over time. Landlord legislation is created to keep your tenants safe in your property. This means that you must abide by the current rules for fire safety, gas safety, energy efficiency and deposit protection.

Your legal obligations include: 

• Right to Rent checks must be carried out for tenants that are 18 years old or over (in England) to check they can legally live in the UK 
• Some local authorities require a landlord licence
• Health and safety – you must fit and test smoke alarms and carbon monoxide alarms, keep gas safety records, and ensure electrical devices are safe 
• Deposit protection (landlords must protect tenant deposits in a government-approved scheme within 30 days of receiving it)
• Tax payments on rental income
• Energy efficiency – every tenant must be provided with an Energy Performance Certificate before they move in
• Tenant notices and communication – you must provide your contact details and issue notice before entering the property

Property management is complex, ongoing and ever-changing. If you’d like some advice about setting up tenancies and ensuring they’re legally maintained, speak to one of our friendly agents now.

 

Creating and enforcing tenancy and lease agreements

Tenancy, or lease, agreements are a contract between you and your tenant. They set out certain rights and responsibilities for both of you, so you each know exactly what is expected of you.

It’s not unlawful to have a tenancy without a written agreement, but it can cause problems for you as a landlord. Without one, it’s very difficult to settle disputes between you and your tenant, as you can’t prove what you both agreed to. A written tenancy agreement is a record that legally protects you and your rights as a landlord. 

Rent payments should be fully detailed within your tenancy agreement, including how and when rent will be collected and when (or if) this amount can be reviewed. 

What to do if a tenant fails to pay rent

If a tenant fails to pay their rent on time, you should contact them straight away, by phone, text or email. There could be a simple explanation for the delay that could be resolved quickly, which is best for both of you. If you don’t receive a response, follow up with a formal letter asking that all arrears are paid immediately. Remind them of your rights as a landlord, and that they might face eviction after two months of unpaid rent. If your tenant still hasn’t paid rent after two months, you can then start eviction proceedings.

Remember to remain polite and calm throughout every interaction with your tenant. If you’re shown to be unreasonable, it could affect your case if it ends up in court. Keep records of all rent payments, missed payments, and all interactions with your tenant, as you may need these to support your case.

Lettings disputes can be difficult to manage so speak to your local Hunters agent for more advice on what happens if a tenant is late with their rent.  

Tenant disputes

If you’re having other disputes with your tenant, then follow a similar path to rent issues. It’s best to try to talk with your tenant about your concerns straight away, and to settle things quickly. If that doesn’t help, follow up with a formal letter reminding them of their responsibilities. You could then try a mediation service, but you may end up having to serve an eviction notice and take them to court if they refuse to leave.

Tenancy disagreements are always stressful for landlords. Expert lettings agents are well versed in handling these issues, so consider getting some support from our team of professionals .

 

Maintenance and repairs

As a landlord, you have a legal obligation to ensure that repairs and maintenance issues are dealt with in a timely fashion. This includes issues the following:

• Structural and external problems
• Heating and hot water supply
• Baths, sinks, pipes and plumbing
• Gas appliances
• Electrics

You must ensure that the property is safe to live in. Once your tenant raises a maintenance issue you need to give them a timescale for repairing it (which has to be reasonable) and complete it within that time.

Tenants have their responsibilities too. They need to maintain the everyday aspects of looking after the home, doing things like changing light bulbs. Tenants need to keep the property clean and outside areas well maintained (cutting grass etc.). They’re also responsible for the costs of any damage they cause to the property, or anything within it.

Ongoing costs like utility bills and council tax are usually the responsibility of the tenant, rather than the landlord. However, they can be included in the rent for some houses of multiple occupation (HMOs) as it’s easier that way.

It’s crucial that the responsibilities for repairs, maintenance and bills are clearly outlined within your tenancy agreement. This is so that your tenant knows exactly what they’re responsible for and it ensures that you’re legally covered if your tenant doesn’t adhere to their part of the agreement.

 

Managing finances

There’s a lot to account for as a landlord, but planning ahead helps to make it more manageable. Make a list of all your costs and work them into your annual budget against the amount of rental income you expect to receive.

Costs to budget for include:

• Mortgage payments – including saving for the principal sum as well as the interest, which most Buy-to-Let mortgages only cover. 
• Maintenance and repairs
• Landlord insurance
• Tax costs
• Advertising for tenants
• Health and safety costs
• Letting agency fees (if you choose to use one)

Ensure you keep receipts and that you log all your landlord costs, so you can use it to work out how much tax you’ll owe.

How to increase a tenant’s rent

If you want to increase your tenant’s rent to help with costs, you have to follow the rules. Your tenancy agreement should state how and when you can increase your tenant’s rent. 

Normally, there’s a notice period that must be given – you can’t just increase the rent straight away. If it’s a fixed term tenancy, you’ll normally have to wait until the end of the tenancy agreement period. However, if it’s a periodic tenancy, you can normally increase it once a year, again with notice and either a written agreement or official Form 4: Landlord’s notice proposing a new rent. 

Whichever situation you’re in, the rent increase must be fair and in line with other rental properties on the market. If it isn’t, your tenant can take you to the First Tier Property Tribunal who will decide if the proposed rent increase is allowed or not.

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Tax for landlords

All landlords must pay tax on the profits they make from renting out property. To get an idea of the amount you’ll pay, work out your total rental income for the year and deduct any allowable expenses. 

The amount that’s left is your profit for the year, and this is the amount that can be taxed. (The amount you’re taxed will depend on your personal circumstances, so it’s worth getting financial advice about this.)

Navigating the rules and the paperwork around landlord finances can be difficult, but we’re always on hand to provide advice and services to help you. Call us today to chat through any areas you’re concerned about and to find out more about our services.

Attracting tenants

The best way to attract tenants to your property is to highlight its benefits and to show it off in the best light. Quality photographs taken by a professional can make all the difference here. When prospective tenants contact you about the property, deal with them in a professional and friendly manner, as this may give them more confidence to move forwards with the tenancy. 

Finding and vetting tenants can take a lot of time and expense, so it’s worth talking to your local Hunters branch to find out more about how we can help to get your tenancy filled quickly, and with a reliable tenant.

 

FAQs

What are the key responsibilities of a property manager?

Property managers show the home to prospective tenants and get them moved in with all the correct checks and paperwork completed. They then manage the property, in terms of dealing with rent collection, and any repairs and maintenance work that’s needed to ensure the property is safe for tenants.

What are the legal obligations for property owners in the private rental sector?

Landlord legal obligations include:

• Meeting safety standards
• Carrying out Right to Rent checks (in England)
• Protecting deposits in a government-approved scheme
• Carrying out repairs in a timely manner
• Providing tenants with an Energy Performance Certificate

If you’re not confident with the legal aspects of being a landlord then speak to one of our expert team members. Landlord legislation can change and it’s important to keep up to date.

How do I handle day-to-day property maintenance and repairs?

Create a maintenance plan so that you regularly check the safety of the property, and respond to any requests for repairs quickly. If you’re struggling to keep up with maintenance due to time restraints, talk to our team so we can support you with this.

What should be included in a comprehensive lease agreement?

Lease agreements should include the following information:

• The details of the landlord and the tenant
• Property description
• Rent amount, how often this is collected and the method of payment
• Details of the deposit and the scheme it will be held in
• Tenancy duration, with start and end dates (if applicable)
• Rights and responsibilities, including repairs etc.
• Landlord access – how much notice the tenant should expect

What are the cost implications of property management services?

The cost of property management varies depending on the company you choose, and the services you need from them. Consider the type of support you want so that you can get an accurate quote from providers.

Letting agency fees for landlords vary depending on the type of support package you choose, and they can end up saving you money in the long term.

How can I stay updated with local rental market trends?

Keep an eye on local listings and speak with your local Hunters branch. The property market is very localised so it’s best to talk to a local expert and sign up to regular updates from them so you can track what’s happening.

Managing tenancies can be complex and there’s a lot to keep track of, especially if you’re renting out a property for the first time. Register as a landlord with us, and we’ll talk you through your options.