Learn how O’Brien Building Services benefitted from our Managed Let service
Renting out property can be a rewarding investment, but maximising your return on investment requires careful decision-making, particularly when it comes to managing the property.
While handling the day-to-day tasks yourself might save on agent fees, a fully managed letting service can provide significant benefits that could outweigh the costs in the long run. Here’s why:
Benefits of using a fully managed let service
- Compliance with legislation: Managing a rental property involves staying current with over 100 rules and regulations, which can change frequently. Failure to comply can result in fines or legal action. A fully managed service ensures landlords are always compliant.
- Stress reduction: Managing a property can be time-consuming, especially when dealing with tenants, collecting rent, and arranging maintenance. A managed service handles these tasks, allowing landlords to focus on other priorities.
- Continuity of management: In case of personal emergencies or the need for time off, a fully managed service ensures that the property is still looked after, unlike a let-only service where the landlord must manage everything themselves.
- Additional benefits: Fully managed services help in tenant disputes, safety compliance, rent collection, and maintenance management. This reduces the potential for lost income and enhances the overall tenant experience.
The downside of a fully managed service is the cost, typically 10-15% of the rent. This will eat into your profits, but the benefits of stress relief, legal protection, and potential cost savings from better maintenance and reduced void periods could offset the expense. Additionally, letting agent fees can often be claimed back against tax liability, further reducing the net cost.
Choosing a let-only or fully managed letting service is a personal decision that needs to be based on your particular situation. If you’re still unsure, get in touch with us.
O'Brien Building Services
A prominent Property Developer in Oxford called O’Brien Building Services did just that and signed up for our fully managed service. It specialises in buying and developing properties to sell or rent.
In 2016 O’Brien Building Services bought South Oxford Business Centre based in Garsington for development. It currently has 10 commercial units, and 19 flats are renovated and occupied. They are currently refurbishing a further 7 flats.
In 2021, the developer reviewed their letting arrangements which led to Andrews Property Group presenting a compelling case putting forward the benefits of implementing a managed let from let only.
Although the developer was an experienced landlord, comfortable with industry pitfalls, the comprehensive business analysis provided by our lettings team revealed areas where revenue was being lost, such as uncollected end-of-tenancy utility payments and inadequate maintenance checks leading to longer void periods.
Recognising these inefficiencies, the developer transitioned from a let-only to a fully managed service with Andrews in 2023. This decision not only streamlined their operations but also enhanced their portfolio's profitability. With increased time to focus on development, greater confidence through rent and legal protection, and a new revenue stream via Andrews’ Block Management, the developer is now poised for even greater success. Delighted with the results, they look forward to a prosperous future with Andrews by their side.
O’Brien Building Services said:
‘Over the years we have developed a close working relation with Andrews Property Group via the Lettings Manager, Julie Calver. She is always at the end of the phone even on her days off. She has her client’s best interest at heart. Having Andrews Property Group to go to has made a huge difference to us as a company.’
(Above: South Oxford Business Centre based in Garsington)
