A good property management company should be fairly local to the area in which your property is situated. They should also be perfectly capable of providing a high level of customer service to assist you in finding sort of property you wish to buy, to help you keep the property fully let, and to ensure that the tenants are suitable people who will not abuse your investment. In short, the company should have a high level of awareness of the requirements of both landlords, and tenants.
The buy to let business environment is extremely uncertain at present, with government action, through taxation changes, making it more and more difficult for entrepreneurs in this sector to turn a profit. A poor property management company that failed to meet both statutory payments and payments to yourselves in good time, could cause real headaches and have a very negative effect upon your cash flow. At an extreme, one that went out of business could threaten the entire viability of your own enterprise. It is therefore essential that you choose one which is financially sound, and that you believe you can trust to handle rent receipts, and ongoing payments. Ensuring that the company is a member of the National Approved Letting Scheme and contributes towards a protection policy for clients' money. There is also a property ombudsman scheme for companies involved in lettings; your management company should belong to this.
Overall, demand for rental property remains high the price of buying a house still remains outside the reach of the average potential purchaser, and demands by lenders for higher and higher deposits, together with increased fees, is pushing homeownership even further away from many people who need to have somewhere decent to live. In addition, we still have a shortage of property in the United Kingdom, which, coupled with continued population growth, is likely to make the situation even worse. Whilst the United Kingdom has traditionally been a property owning arena for a very long period of time proportion of rental property in this country is still quite low compared to other countries in Europe. This suggests that the rental sector is likely to continue to grow, in the short to medium term at least. Since housebuilding is showing no signs of great increase (and the impact of Brexit, and the subsequent restrictions which are likely to be placed on foreign tradesmen is likely to make the situation even worse) demand is likely to stay high the consequence upward pressure on rents. Smaller properties, more suitable for new families, are in particular short supply and it is therefore reasonably certain that those who are providing affordable accommodation of good quality are likely to continue to attract a high level of interest. Uncertainty over house prices (again affected by Brexit) can only accelerate this trend.