With some interest rates rising above 4%, fixed-rate mortgages running down, and rental voids becoming more and more commonplace, it can seem like a difficult time to be involved in property management in London. Dealing with these external forces is only half the battle though. Property owners also need to think about staffing levels, maintenance and compliance checks, and administrative tasks.
Read on to find out more about the challenges that 2023 holds, as well as some approaches that our expert team think could alleviate your worries.
Making the Most of Your Money
Now, more than ever, property managers need to be conscious of what their bottom line is. Interest rates and the end of fixed-term mortgages is pushing costs up, while energy costs and prices in shops are soaring, too. While cutting costs is the first port of call for most, it isn’t an ideal scenario if you want to attract and retain tenants.
The best solution, especially in a market like this, is to be smarter with where the money goes. Rather than spending an ever-increasing amount on individual services and relying on countless entities to work in harmony, many companies are choosing to trust one entity for everything. These all-encompassing services provide value for money by taking care of everything for a set cost, though this is just the tip of the iceberg.
Property management companies offer value beyond what you pay them. Their expertise in the marketplace means that guest satisfaction improves through the tenancy life cycle, and this saves you money. These companies identify tenants that match your property and goals, this means that they’re much more likely to stick around. The resource you’ll then save on finding new tenants can be diverted into other important areas. Similarly, the experience they offer allows them to target clients at opportune moments, allowing superior yields. And finally, being preventative as standard means that maintenance and compliance issues are identified and remedied efficiently, lessening the chance of high repair costs in the future.
Utilise Your Time Effectively
Along with the money you’ve invested, time is one of your most precious commodities. The minutes, hours, days, and weeks you spend on a property hold tremendous worth, and it’s important that you’re getting value for the work you’re putting in. Managing multi-property portfolios is often a dawn ‘til dusk task (and sometimes more), with tenants checking in at all hours, maintenance cropping up at the most inopportune times, and cleaning services required at the drop of a hat.
However, it doesn’t have to be this way. With advancements in technology coming thick and fast, the way property management in London works is changing. Tech-enabled systems are becoming London’s preferred choice, with never-ending email chains and countless missed phone calls phased out. As well as being easy to use and cost effective, they also save you time in the short, medium, and long term.
Technology platforms provide you and your tenants with the tools to report, view, and action work in a central location. This means admin goes from checking email inboxes, answering machines, and WhatsApp groups to logging onto a single platform. This tech is designed to manage every aspect of your portfolio, saving you time and giving you clear schedules. By stepping into the future with them, you stand to re-discover the value that your time holds.
Find Your Ideal Tenants
After time and money, another valuable part of your operations is the tenants that call your property their home. However long they’ve been with you, tenants provide an income stream to your business. Finding these ideal tenants is often the difference between a positive and a negative yield. Having tenants that want to stick around also means that your budget doesn’t need to factor in the same level of advertising spend. In turn, this means you have a healthier bottom line and the flexibility to re-invest into key business areas.
Tenant loyalty is also valuable because of the trust fostered by the relationship. Landlords that are new to property management in London may worry about damage to their property. Wear and tear are part of life, but extensive repairs and maintenance are a drain for property owners, especially in the market we find ourselves in. By having loyal, hand-picked tenants, you lessen the chance of major damage being caused. This saves you money, because you’re not making regular repairs or replacing parts of the property. It also saves you time, because you don’t need to spend weeks identifying suitable guests.
If you’re ready to take control of the marketplace and push your portfolio further than ever before, trial our free London rent estimation tool.
At City Relay, we combine our experience and knowledge with a new-to-the-market approach to manage properties with ease. You know what you’re spending every month, and we tailor our services to match your requirements. From flexible letting to property management and compliance to operations, we provide everything you need. Our goal is to keep your costs sensible and to maximise your returns.
Alongside managing your property effectively, our in-house team help to identify ideal tenants. Our flexible letting services maximise occupancy with no downside. This flexibility is at the heart of everything in 2023. At City Relay, we’ve always been of the opinion that flexible renting is the best way to achieve exceptional yields. People choose to work, spend, and live flexibly, and we believe in embracing this outlook for rentals.
Connect with us today and you’ll stand to attract the right tenants and set yourself on track for better yields.