Most of the people are not even aware of the fact that they have been losing money by managing their own HMO property. Here are the facts you should know
1. Property management is a major commitment
One of the biggest reasons that you shouldn’t be a hands on landlord managing HMOs or multiple properties is because of the sheer amount of time, energy, and money that will be involved. HMO by itself is at least six properties. You will literally have to keep running behind several vendors to maintain your rental income. Which unknowingly starts affecting your main job.
The amount of work that will be involved may find you stretching yourself thin. Your time and energy could be better served by investing in other assets or excelling further in your own career.
2. You’ll Have to Wear Too Many Hats
One of the biggest reasons why it’s smart to have an HMO property management company handle your HMO or multiple properties is the sheer number of hats that you will be forced to wear if you try to do it all by yourself. These may include everything from owner, manager, handy man, customer rep, and security guard to accountant and marketing expert.
As can be seen, this is a lot of stuff to have on your plate. Now imagine having to be all of these things at a multitude of different properties. One of the things that can also become tough, is the amount of knowledge that you must know about the laws and regulations. Do you know about maintenance? Do you know the laws, have networking capabilities needed to manage properly?
Most of the above work is done in house by companies like us and it we hire an specialist we pay them lot less than the landlords because they are very competitive with us as we give them lot of work.
3. It’s Hard to Be at Your Best
Even managing a single property is quite a drain. You need to be on top of every little thing that may occur. This may include damage from a rogue tenant, the effects of a feud between neighbors, or a fire that breaks out at the property next door or an inspection from the council. You will find yourself being called on to take care of a huge number of unexpected events at odd timings.
If you try to manage a number of properties all at once by yourself, you can expect to not be at your best. You’ll be stretched impossibly thin between multiple events going on at once. It can become extremely time consuming and will become a massive commitment long term. The result is unknowingly you start cutting corners which results in rental delays, fines from the council or degeneration of the state of your property.
4. It’s Too Hard to Stay Focused
One of the ultimate reasons why you should turn your HMO over to a management company is because you will simply find it too hard to stay focused. You may have plenty of other activities that you need to attend to outside of your landlord duties. You are likely to miss out on spending time with your loved ones or enjoying your free time on the weekends.
5. There’s a Lot of Risk Involved
Being on a property under bad weather conditions is a risky thing. I heard from one of my friends that he wasted all his day with insurance companies as one of the roof tiles he had felt because of Eunice. As she didn’t understand property well she was very scared of this issue. Being present during a dispute between tenants that you find yourself in the middle of can be quite dangerous. You need to make sure that you have the proper policies and procedures to help mitigate these risks.
There is another alternative that is well worth considering. Have you ever thought about why it’s smart to have a property management company handle your HMO or multiple properties? The time, effort, and money that it takes to do it all by yourself can be invested in a much safer and easier way by letting an expert handle these issues on your behalf.
Even managing two properties could get to be a hassle after a while. It may be better for you to cast your attention toward becoming a property investor rather than hands-on landlord. A property management company can take all of the hard decisions off your hands while making you plenty of money
