If you’re a landlord with rental properties in Cheltenham then one of the first decisions you’ll have made is how involved you actually want to be in managing them.
It sounds like a simple question, but the answer will impact on everything from your day-to-day workload to how well your investment performs over time.
Currently, the Cheltenham rental market is buoyant, with strong demand across areas such as Montpellier, Lansdown and Leckhampton.
However, legislation is tightening and tenants’ expectations are rising, so the way your property is managed is likely to directly impact both rental income and long term performance.
A Let Only service covers the initial stages of a tenancy. Your agent handles marketing, viewings, referencing and the tenancy agreement, and then they pass responsibility for managing the property over to you.
For landlords who are local, experienced and genuinely comfortable dealing with tenants, maintenance and the ever-growing list of compliance requirements, this can work well. The costs are lower, and you stay fully in control.
What’s easy to underestimate, though, is the time commitment this requires.
You will need to manage rent collection, chasing arrears, responding to tenant issues, coordinating repairs, keeping on top of certification etc.
It can add up to a significant amount of time, particularly, during busy periods or when something goes wrong.
A Fully Managed service covers all aspects of managing the tenancy from start to finish.
At Morgan Associates, that means we oversee the rent collection, co-ordinate maintenance through our network of trusted local contractors, conduct regular property inspections/reporting, and stay across legislative changes to ensure your property remains compliant.
For landlords who live outside Cheltenham, and/or have growing portfolios, or simply don’t want property management eating into their week, fully managed tends to be the more practical option.
There’s a management fee, but many landlords find it more than pays for itself through better tenant retention and fewer void periods, while also avoiding any costly compliance mistakes.
Cheltenham isn’t your average rental market. The town has a wonderful, eclectic mix of period apartments, Regency buildings and quality family homes that attract tenants who expect a certain standard in terms of how a property looks and in how it’s run.
A well-managed flat or house lets faster, holds its rental value, and keeps good tenants for longer.
Legislation is also moving in one direction, and we’ve seen how The Renters’ Rights Bill, along with longer notice periods and the shift towards periodic tenancies have added to the administrative load on landlords.
If you get something wrong, even unintentionally, the costs can be very expensive.
Option 1: Let Only makes sense if you have the time, the knowledge and the proximity to your property to manage things properly.
Option 2: Fully Managed is a better option if you’d rather protect your time and know everything is being handled professionally.
Quite a few landlords start with Let Only and switch once they’ve lived the reality of ongoing management. Others switch over when their portfolio grows or when the legislation starts to feel harder to keep up with.
Either way, it’s worth getting clear on what you actually want from your investment before you decide.
If you’re thinking of letting in Cheltenham and want to talk through your options, get in touch with our expert, friendly team at Morgan Associates: sometimes a short conversation is all it takes!
To discuss the best management option for your rental property, call us on: 01242 514285 or email: info@morgan-associates.co.uk
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