How Property Management is EVERYTHING | Property Investment UK

Do you know your stuff when it come to property management? Do you currently have property management in place for your buy to let investments? Or are you wondering what the hell is property management is do you really need it on your buy to let property investments? Well, this video is the right place to be! I will be giving you the low down on how property management can help or hinder you, and wether I would or wouldn't recommend property management when it comes to your buy to let investments!
REMEMBER - Want to become one of my investors? Do you have £100K ready to go? fill in your details here: Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details!
-------------------------------------------------------------------------------------------------------
Interested in getting educated by me about all thing Property Investing then go to: bit.ly/aspireeducation
Want to become one of my investors? Do you have £100K ready to go? fill in your details here: Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details!
How I research properties: PropertyData: propertydata.co.uk/a/jamieyork
How I Manage my portfolio finances for free: Lendlord: tracking.lendlord.io/click?ca...
How I get finance for my property deals: www.lendlord.io/financehub?ut...
Before you go make sure you've subscribed to not miss out on the latest property investment videos!

[@bobsmith3378]

i self manage, i have a handful of properties, openrent does most of what you mention in the video then when a problem arises i send a handyman round, basically what the agent does anyway, all my houses are back to brick refurbs so problems dont arise THAT often, ive gone a year+ with no problems its pretty easy and simple Probably different if i had 50 properties but the agent hardly does anything to command that 12% fee

[@The_Unintelligent_Speculator]

And you are the business partner I need in my life.

[@sixtyoned6190]

I’ve used managed services and self managed. Currently self manage as whenever there was a problem I found myself having to manage anyway to some extent and questioned what I was actually paying for. Also, repairs/maintenance scheduled by them were inflated somewhat compared to what I can get easily myself. As for getting the most rent, not as good as it sounds. Yes they’ll get you market value but you’ll have much higher turnover. Tenant Turnover = finding a new tenant costs as much as annually so in many ways you’d have been better not having that extra £50 a month. My current tenants have all been in my houses for almost 10 years. Better to give good tenants a slightly below market rate and treat them fairly than squeeze every last penny out! A good relationship usually means less issues.

[@proventure]

Agree with Jamie to get full management as you build the portfolio but when built or at least of a size that you can give up the day job it makes good sense to leverage the scale and self manage imho. Sites like Open Rent make listing (£29 per unit) and tenant communication very easy. Our typical net profit on turnover is 40% by self managing, it was 20% when fully managed. That's half your profit gone. Agents cost you more than just their 10%+vat fee in their inefficiencies & costs to get maintenance done. We had fully managed for 10 years, wished we had cut across before.

[@AndyLowe-net]

I completely disagree with the sentiment of outsourcing management. A property is a huge asset and you need to know what's going on. I have used many agencies and at the end of the day they don't care as much about the property as you do. They also have no incentive to try to solve problems in a cost effective way, they would just rather replace things and send you the bill. You shouldn't think of it as an annoyance that you have to go inspect your property twice a year, in my opinion you should be there 6 times a year and should have a good understanding of everything that's going on in your property, or it will cost you more down the line. Think of it this way, if you own a HMO that's brining in 30k a year, that's a significant amount of income, how many hours do you think is reasonable to spend on taking care of that investment?

[@JamieYork]

That would work for someone that isn’t busy with a job or only has a few properties, but it’s not reliable for those looking into scaling portfolios in my opinion. Of course, it’s each to their own

[@AndyLowe-net]

@@JamieYork you are correct, but it's a very important caveat. I believe if you only have one or two properties then that's the perfect chance to learn how to look after them and then it only gets easier as you gain the skills and experience. If you outsource it from day one, then it will always seem overwhelming. I'v personally had disappointing results when relying on other people to look after my property. But maybe I went too cheap on the management. If I could do it again I would only use the very best company even if they are very expensive

[@ola.6969]

Hi Jamie. Love your channel, it's so informative - thank you. Could you make a step by step video on how to start your own property management company in the uk?

[@rikardsaje]

I self manage my BTL'S but rent them to organisations that hardly ever call me. They pay the going rate and I never have voids. It's been great but as my portfolio grows I'll use letting agents as want to be as hands off as possible. It's all about the capital growth.

[@JamieYork]

That's great man! Well done!

[@michaelbarry-hc7ok]

Great Video You Make A Lot Of Good Points

[@JamieYork]

I appreciate that, thank you!

[@nipnip2371]

Great vid

[@JamieYork]

Cheers for watching mate! Glad it helped!

[@MrBeats44]

Deals no longer stack if the nice chunk of your profit goes the the management

[@alimonfared]

Great video but just flip the houses?

[@JamieYork]

Why would. I want to flip the houses? I want to keep them for as long as possible!

[@alimonfared]

@@JamieYork don’t get me wrong it comes down to numbers and age of investor and on some we keep but that’s for the cheaper side properties mostly like for example I have a few projects going on right now. One purchase price 81k refurb 27k after all costs and fees including sourcing, council tax and utilities we are in £117,000 including exit solic and agent fees and we sell it 140-150 say low end (already received offers higher ) at 140 that’s 23,000k a return pre tax of 19% on cash with full money out 140k in 4-7 months. Now here the the day of why not keep it and why flip it. It comes down to numbers, say we wanted to keep it and it refinanced at a value of 14000 easy with our broker already confirmed we can get it at 145 based on the significant amount of comparables on the road. 75%ltv of 140 is £105,000 (being the amount the bank will lend) minus full cash invested 117,000 (absolutely every single cost you can imagine same as if we were to refinance and pay for Tennant find). Leaving in the deal £12,000. Monthly gross rent low 650 yearly gross £7,560 Monthly mortgage interest at 5.4% £482 Monthly maintenance 10% £65 Monthly management 12% £78 Total monthly cost £625 Monthly profit £25 Yearly profit £300/12,00 2.5% ROI return and cash left in with the hopes a small capital appreciation to sell later on to make a return. Any way we also have one done other similar to one we just bought yesterday 65k purchase 15k refurb and all in fixed costs including sourcing g and selling and bills £88,000 full cash invested end sale with 2 houses down sold 105 and comparables 100-110 on same road identical say as a flip sale low 100 profit 12,000 in 4 months full money out with a 13.6% Roi in 4 months. Now I decide to rent it as it has a high rent of 700pcm and a low borrow amount meaning holding it could potentially work, 75% ltv of 105k £78,750 lent to us with 88k full cash -78,850 = 9,250 left in the deal £9,250 Rent 700pcm yearly gross 8,400 5.1% mortgage £4,021.35 yearly Monthly £335.11pm Management 12% £84 Other costs 8% £56 £475.11 cost pcm Monthly profit £224.89 Yearly £2,698.68/ £9,250 around a 29%ROI on money left in 1 year from rent Comes down to investors situation and goals. Doing a. Other project it’s a HMO great return investor wants to keep as some to his taste amd high cash flow ROI. Both work but focus on making the money. Long term growth is the icing on the cake and should in my opinion not be factored in any return untill refinanced at new value or sold at new value. Having said that you are my inspiration and aspire to have a successful sourcing business like you. Thanks

[@JamieYork]

Love it. Completely situational isn’t it! Great numbers and thanks for the compliment 😊

[@Andy5c]

Couldn't disagree more. I use open rent super cheap and you are on all the big site. I pre screen through open rent then do 5-10 viewings. 95% success rate on viewings so I then get to pick from the best of the best and as I do the viewings not an agent keen to just 'get someone in' I get to pick who I like/prefer. Letting agents are a waste of time tenant calls with issue they sit on it for a few days then call me as its now a big issue. By then, tenants disgruntled and for what 10% plus vat to an agent they are basically is a switch board no thanks.

[@JamieYork]

That’s all good. You’re a landlord, not an investor which has its pros and cons 💪 that’s not disagreeing as such, just a different way of doing things!

[@snipperacoustics]

We have 7 residential properties as a family that we rent out, yes the agency will try to stick someone in straight away and give the shortest contract possible but if you develop a good relationship with them and stick to your guns they give you a summary of each potential tenant and you can decide yourself who to put in. Also I do place a video door bell on viewings so I can see who views the property. I ask for a minimum 1 year contract and it has been quite succesful so far. Just the legal side of it signing contracts also if something goes wrong they give you rent guarantee and rent collect on time and deal with all the eviction issues if necessary, I put employees previously by myself in two of our properties and they left the house in a state etc, never again. Plus it is good they don't know who the landlord is. I do all the repairs myself though but I make sure the houses indestructible before tenants move in.

[@NevaWilson-ty2od]

When I moved into a small apt complex the owner and his brother were there alot working on something. They were very nice. Then they sold the apt to some creep in NYC then we had to deal with a bunch of low IQ idiots property managers that cannot think for themselves.

[@JamieYork]

That sounds like it wasn't the most pleasant experience!

[@Laurro53]

APG

[@JamieYork]

Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details :)

[@bilalyaqub8989]

Apg

[@JamieYork]

Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details :)

[@user-th1vz5qb2w]

APG

[@JamieYork]

Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details :)

[@andrewholliday4592]

APG

[@JamieYork]

Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details :)