N ow, more than ever before, landlords need to be more “cost conscious”.
Increasing regulation, harsher penalties for non-compliance, increased costs of building & maintenance materials, increasing voids and rent arrears, and more onerous taxation are just few of the issues affecting landlords’ bottom line.
The Nationwide Building Society has produced some figures to suggest what it might cost to run one rental property over a year.
Their research revealed that landlords pay an average of £1,500 a year in costs to rent out a property, rising to over £2,000 if new tenant is needed.
While the mean monthly profit from renting out property, after taking away typical costs, is £610, almost three in five landlords make £500 or less a month, a third earn less than £300 and 22 per cent less than £200.
One in seven say they make £100 or less monthly profit from renting out their property – less than £1,200 per year. One in 20 landlords don’t know how much, or even if, they make a profit!!
This shows how tight margins can be for landlords, obviously bearing in mind that there are many variable factors and regional variations.
The survey pointed out that lettings fees are one of the most significant costs for landlords.
When opting for a fully managed service from a traditional High Street lettings agent, landlords could pay anything from – typically – 10% to 18%.
But here’s a thing – whether your property rents for £500.00 pcm or £1500.00 pcm, it is the same amount of work for the agent to manage it!
This disparity was at the forefront of our mind when The Property Management People service was launched.
Our service offers full property management at £40.00 per property per month (inc vat)*
So, for example, if a landlord has a rental income of £1000.00 pcm and they are paying 10%, to a High Street agent, then that is costing them £1200.00 per annum plus vat.
If that same property was let through TPMP, it would cost the landlord £480.00 (inc vat) per annum.
That is a saving of £720.00 over that 12 month period.
Now, you might well be thinking that we may somehow be compromising on service to offer such a competitive rate.
But we’re not………
We are able to offer this price as we are backed by a large specialist company that has been offering this service in a different niche area for over 6 years, and this is piggy-backing off our existing infrastructure, staff, and systems. We have thousands of properties under management and our staff and systems provide a well-honed property management solution.
Furthermore, we have client money protection in place, are members of an independent redress scheme, and a landlord association, demonstrating our commitment to professional standards.
All of the above should give you peace of mind that we can be trusted to manage what is probably one of your greatest assets, your rental property.
Landlords are assured of our full attention at all times, as we only offer property management.
We are not intending to be a jack of all trades, but rather a master of one.
So if you are looking to reduce your costs without compromise, then you should definitely consider our service.
You have nothing to lose but could potentially gain an improved bottom line!