Full Property Management or Finders Only Service?06 May 2016
Full property management or Finders only Service? Edinburgh is seeing strong growth in Finders only Service.
The advantages and disadvantages:
Rents have been increasing gradually over the last few years, and this is fabulous news for Landlords particularly when there are tighter rental regulations, and therefore more costs attributed to landlords than ever before. Whenever Fineholm have been at training seminars or Award ceremonies, particularly in London, it is evident to see how the rental market operates quite differently to our major Scottish cities. A Finders only service seems to be more popular than full management in London and this is because of one major reason – rent levels. On average rent levels are higher in Edinburgh than Glasgow and this may explain why we are seeing more growth on the East coast for this service.
Cost and fees alone are never the primary reason a landlord chooses a service but it would be naïve to think that there is no impact. Property is after all an investment and it is the return that counts. A Finders only service is cheaper; there is no doubt. And in Edinburgh it is becoming increasingly popular. But it does take away the security of a well-established agent, who knows all the ins and outs of property management, who has a business relationship with the tenant ,it never becomes personal (which is when problems start arising). Leases are always kept up to date and renewed, rents are never allowed to fall into arrears and the property should be maintained to a specific standard with regular inspections. If there is a maintenance problem, your maintenance manager is there to deal with the problem with tradesman to hand to respond quickly.
If however, as a landlord, you understand the pitfalls that may occur in renting a property out; you may have been renting out properties for a number of years and you have the time to be able to spend on the management then it is a practical and sensible choice…and an overall lower fee. Fineholm can still provide excellent marketing, full tenant referencing and full advice on the necessary regulations to meet at the start of a lease. We anticipate a further increase in demand for this service in the coming months.