What to expect when you start working with a property management company

When you commit to work with a property asset management company, you are doing so to relieve yourself of the often-heavy burden of property management.
June 12, 2024
When you commit to work with a property management company, you are doing so to relieve yourself of the often-heavy burden of property management.

With this in mind, it is important to feel the relief of that burden lifting from your shoulders early on. Core to achieving this is excellent communication between you and your property managers from the get-go. But what is property management? And what should you expect when working with a property management company?

Our property asset management team explores best practice examples of what to expect from a property management company.

What does a property management company do?

A property management company oversees a rental property on the behalf of the landlord. Their role includes collecting rent from tenants, taking responsibility for day-to-day repairs, and managing the overall maintenance of a property.

How to select a property management company

It is important to select a property management company that will lead from the front.

At the start of any property management relationship, there will be a great deal of information to exchange – from ensuring both parties understand what you want to get out of the relationship, to exchanging the information needed to allow the account to run efficiently.

You should expect the company you retain to liaise with you in an open, candid and clear way. This will help you to build up a relationship founded on mutual trust.

When onboarding a new client, our property asset management experts invest a great deal of time into acquiring a solid understanding of the scope of the instruction, as well as your investment aims.

This process really helps to set the tone of the relationship and allows us to set objectives that meet with your aims, whilst allowing us, as your property managers, to be in the best possible position to deliver on your needs.

Once you have collaborated with your new property managers to understand how you will work together, there is a host of questions that they will want to ask you to ensure that they have up to date, accurate information about your asset or portfolio.

Questions might include:

Are you based in the UK or abroad?

The process is different if the latter, which would require us to obtain certification on HMRC’s Non-Resident Landlord Scheme.

Do you charge VAT in respect of the property?

If so, do we need to demand this on top of rent and other services charges? This avoids the potential challenge of finding out at a later date that VAT was due but not demanded, which can lead to problems down the line.

What is your approach to accounting? Cash or on-account?

Understanding this will help to align accounting practices on both sides to ensure smooth reporting on accounts.

Have you provided a complete set of documentation?

Providing a complete set of legal documents and leases which are dated and signed ensures that your property management company collects the correct rents and monies due.

Once the management company has this information, some companies will provide you with a cloud-based platform on which you can monitor your asset or portfolio.

To support a data driven, customer-centric service we have implemented the latest technology, allowing our clients to benefit from data insight, risk management and convenience in the management of their properties / portfolio.

We achieve this via MRI Horizon – a platform to manage portfolios, giving you access to a scalable web-based platform with everything you need about your property or portfolio, in one place.

A data-driven, technology-led service, together with a customer-centric approach to property management is undoubtedly important. But it is also important to work with property managers you like and get on well with, because property management is, at the end of the day, founded on communication and relationships founded on mutual trust.

For more information about our property asset management services, get in touch.