Whether you’re an Accidental Landlord or a Property Mogul you’ll face similar concerns when it comes to managing a property portfolio.
Even with the help of an estate agent it can be hard to keep track of all of your Landlord responsibilities and falling short of your obligations can result in costly mistakes that no entrepreneur (or property dabbler) can afford to make. With profit margins being at an all time low for those in the property sector, it’s important that we make our portfolios as efficient as possible to stop much needed income running away from us.
Sometimes seemingly innocuous oversights are the very thing that topple inexperienced landlords who often have no idea that they’re doing anything wrong until its too late.
Some examples of small omissions culminating in big disasters are as follows.
Failing to track rental income
This sounds obvious but so many first time landlords make the mistake of trusting a local estate agent to handle the rent without giving it a second thought. You probably already know our stance on estate agents, however we don’t believe that there is no place for them, we just think that hiring an agent doesn’t negate your property management responsibilities – on the contrary, it adds to them.
Usually an agent will collect the rent, deduct their commission and then remit the balance to the landlord. Usually a novice landlord thinks this is good enough. But if you’re not keeping tabs on your income then you don’t know whether you’re receiving the correct amount. You don’t know whether the tenant is paying on time every month. You won’t be prepared when your tax return is due and you won’t be taking your responsibilities seriously.
What if you had an easy to use system which collected and collated all of this information for you?
Skipping essential maintenance
It’s not plausible to think that you’ll remember all of the maintenance that your property / properties will need over time. You may start off with good intentions (we all do), however once your tenants are in and paying rent, it’s easy to forget about a property you’ve no need to think of – and this is when you’re most at risk of seeing said property slip into disrepair.
More importantly, have you considered the gas safety check you should be performing on each property? Are you prepared for the conviction if a subsequent accident occurs as the result of your omission which harms the safety of your tenants?
What if you had an easy to use system which diarised your maintenance needs and reminded you when they were due?
Forgetting to track expenses
Tracking expenses is important for several reasons. If you are to manage a property portfolio as a business (as you should) then knowing only your income is not sufficient. Having an in-depth knowledge of both your regular and ad-hoc expenses will be the difference between you prospering as a Landlord and expanding your portfolio quickly, and your losing money and in turn misplacing your motivation to grow your business. To know whether your property is a goldmine or a money pit you must first know it’s expense.
I also revert back to that old tax return which always seems to come around inexplicably soon. To benefit from the ever reducing yet all important deductions and allowances which can be big money savers in some circumstances, you’ve got to know what you’ve spent.
What if you had a one stop shop which could track these expenses for you and provide a full profit and loss report? What if it calculated your tax return for you too?
The easiest way to manage A property portfolio
We recently became aware of a piece of landlord management software called Landlord Vision. It is an affordable solution to all of the above problems and much, much more.
Not only does this software allow you to easily oversee every aspect of your business, it is cloud based (think Dropbox or iCloud), meaning that you can access it at any time from any device, as long as you are connected to the internet. We love how you can use your phone to check on your stats whilst waiting for the kettle to boil. There’s no excuse for being out of touch with your property empire!
If you are responsible for the management of three properties or less its FREE and for those of you on the other end of the scale, the cost of managing up to fifty properties is a tiny £29.97 per month. Full pricing can be found here.
Still not sure? Have a look at this cool demo and see why we love it so much:
Being a landlord is hard enough without even considering the business side of things and so we support anything that aims to take some of the more tedious elements of the job and simplify them. When we already have to clean properties that look like crime scenes after a tenant has been evicted, deal with excuse after excuse when rent is late and listen to complaints from neighbours about undeclared pets pooping all over communal grounds, we think we deserve some good news. We hope Landlord Vision is the good news you deserve too.
If you’re interested in unburdening some of your woes, try Landlord Vision for free and let us know what you thought of it in the comments below.