Who regulates property management companies in the UK?
Are you wondering who regulates property management companies in the UK? As a landlord, it's crucial to understand your responsibilities and obligations. Consider hiring a property management company to help you with managing your portfolio. Keep in mind that selecting a company does not relieve you of all responsibilities. Make sure to choose a reliable company that will fulfill its duties well.
Are Property Management Companies Regulated?
There are several things you should consider before picking a property management company. Learning who their regulators are is a good idea. You can discuss with the property management company who they work with and what they do to ensure that they operate within the guidelines given by any regulator.
• The Property Ombudsman
The Property Ombudsman deals with all sorts of organisations within the property industry including estate agents, letting agents, and property management companies. They have several membership obligations that members must follow & are available for customers to contact should they be unhappy with how a complaint has been dealt with by the company in question.
• RICS – Royal Institution of Chartered Surveyors
RICS deal with the Rules of Conduct surrounding property management as well as offering advice for handling complaints and the minimum standard expected for UK residential properties. They have a range of resources available to landlords including the 2015 Private Rented Sector Code which advises on how to run residential property companies in England and Wales.
• Arma – The Association of Residential Managing Agents
ARMA is a well-known leader in the residential property management industry in England and Wales. Companies can choose to register with them, giving landlords peace of mind when choosing a recommended company. ARMA provides advice on a variety of landlord and property-related topics, as well as assistance with running a successful property management company if needed.
• ARLA – Association of Residential Letting Agents
Property management companies and resident letting agents can register with ARLA and sign up for a range of property management courses to brush up on their skills and improve their industry knowledge. As a landlord, you can choose to hire a property management company that is registered with ARLA for added security. Knowing your property is managed by a company regulated by ARLA can give you peace of mind.
How Much Do Property Management Companies Charge?
The price of hiring a property management company varies based on your location, rental value, and level of involvement. Many companies offer a range of packages, allowing you to choose a level of involvement that best suits your needs. Keep in mind that more involvement means a higher cost. For example, if you ask the company to handle everything from repairs to invoicing, it will be more expensive than if you handle some aspects yourself. However, the extra cost may be worth it. Research what you need and discuss options and costs with the company you want to hire.
What Are Property Management Companies Responsible For?
A property management company can work with you to determine responsibilities. Most offer flexible packages that can be tailored to your needs. Some landlords prefer a company that handles everything, while others prefer a different approach. To find the best solution for you, talk to local property management companies and explain your needs. Ask them about the options they offer, so you can find the right fit for you.
Can You Change Property Management Companies?
Generally speaking when you commit to using a property management company you sign a minimum-term contract. This doesn’t mean that you definitely can’t change property management companies but it is worth checking the terms of the contract you have signed to see how you would go about changing. If you do want to swap property management companies it could be worth speaking to the company you currently use about your reasons for wanting to swap and see if they could resolve this for you instead.
Do Property Management Companies Pay for Repairs?
Typically, property management companies do not cover the cost of repairs. They pay for the work to be done and invoice the landlord for the expenses. Beforehand, the budget for repairs is discussed and set. The landlord must approve any repair costs exceeding the budget before proceeding.
Are Property Management Companies Worth It?
Everyone will have their own opinion of property management companies and whether they’re worth it for them. Entrusting your large property portfolio to a professional agency can ease the pressure. Even if you only own one property, letting an agency handle it can make being a landlord less stressful. To find the best option for you, research your options, assess your needs and choose the one that fits your requirements the best.
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