With the UK’s rental market booming and more people choosing to rent, property management services are increasingly in demand within the property industry. Given that you do not need any formal or specific qualifications to become a property manager, it can be a business with a low barrier to entry and the income can be very attractive.
As a property manager, your role will be to manage and handle the property you are responsible for and the tenants that occupy it. This could be for simple residential flats, to large commercial office blocks and huge blocks where people live.
Introduction to the Role
What Are The Roles of a Property Manager?
According to J Property Management, such companies provide a range of services to property owners, including handling tenants, maintaining properties, and ensuring legal compliance.
As a property manager, you will play an essential role in making sure rental properties are well-maintained and that tenants are satisfied. Here’s what property managers typically do:
- Collect rent and ensure payments are made on time, emphasizing the importance of collecting rent.
- Handle tenant complaints and queries.
- Manage repairs and maintenance issues for the property.
- Advertise and market properties to attract tenants.
- Screen potential tenants to find the right fit.
- Ensure legal compliance, including safety checks and tenancy agreements.
- Handling legal documents is crucial for maintaining proper records and compliance.
- Handle evictions when necessary.
Do I Need Qualifications To Be a Property Manager?
No. In the UK, you don’t need specific formal qualifications to start a property management business, and there is no legal requirement for property managers to possess specific qualifications. However, having certain certifications can improve your credibility.
For instance, many property managers choose to complete the Level 3 Award in Residential Letting and Property Management, which is recognised by the National Federation of Property Professionals (NFoPP). This professional qualification gives you a solid foundation in property management law, tenant relations, and industry best practices.
Enrolling in a course can further enhance your skills and qualifications, making you more desirable to employers.
Other helpful property management qualifications include:
- Membership with industry bodies like ARLA Propertymark, RICS, or the UK Association of Letting Agents (UKALA). Membership in these organizations can offer you credibility, ongoing training, and access to resources that help you stay compliant and competitive.
- Continuing Professional Development (CPD) courses in areas such as property law, customer service, and finance management.
Education and Training
While formal qualifications are not always necessary to become a property manager, many employers in the property management industry prefer candidates with relevant education and training. Property management courses and qualifications can provide individuals with the knowledge and skills needed to succeed in the industry. These courses cover topics such as property law, financial management, and marketing, and can be taken online or through vocational training. Nationally recognized qualifications, such as those offered by the Royal Institution of Chartered Surveyors (RICS) or the Chartered Institute of Housing (CIH), can be beneficial for those looking to advance their careers in property management. Additionally, many property managers choose to gain valuable skills and knowledge through experience working in lettings agencies or as estate agents.
Career Development
A career in property management can be rewarding and challenging, with opportunities for advancement and professional growth. Property managers can work in various locations, including residential and commercial properties, and can specialize in areas such as rental properties or estate management. To develop their skills and knowledge, property managers can take advantage of training and certification programs, such as those offered by the Association of Residential Letting Agents (ARLA) or the National Federation of Property Professionals (NFoPP). With experience and additional qualifications, property managers can move into senior roles or start their own businesses, providing property management services to clients. The property management industry is a significant sector, with many employers seeking qualified and experienced property managers to join their teams.
Industry Requirements
The property management industry is subject to various laws and regulations, including the Housing Act 2004 and the Consumer Rights Act 2015. Property managers must be aware of these regulations and ensure that they are complying with them in their daily work. Additionally, property managers must be members of a government-approved redress scheme, such as the Property Redress Scheme or the Rent Smart Wales scheme, to resolve complaints between landlords and tenants. Property managers must also have professional indemnity insurance to protect against claims due to bad advice or professional mistakes. Furthermore, property managers must be aware of their additional obligations, such as keeping track of financial records, paying bills, and conducting background checks on tenants.
Professional Certification
Professional certification is an important aspect of the property management industry, demonstrating a property manager’s expertise and commitment to best practices. Many property managers choose to obtain certification through organizations such as the RICS or the CIH, which offer nationally recognized qualifications. These certifications can be beneficial for property managers looking to advance their careers or start their own businesses, as they demonstrate a level of competence and professionalism. Additionally, many employers require property managers to have professional certification, such as the ARLA Propertymark qualification, to ensure that they have the necessary skills and knowledge to manage properties effectively. By obtaining professional certification, property managers can gain a competitive edge in the industry and increase their earning potential.
Formally Set Up Your Company With Companies House
To legally operate as a property management company in the UK, you need to set up a business structure. Most small property management companies register as limited companies with Companies House, which limits your personal liability. Some property managers choose to be self employed.
You will also need:
- A business bank account to separate your finances.
- Professional indemnity insurance to protect your business from legal claims.
- Client money protection (CMP) to safeguard any rental income or deposits you handle on behalf of landlords.
- Data protection registration with the Information Commissioner’s Office (ICO), as you’ll be handling tenant information.
Starting your own business in property management can be highly rewarding. Obtaining a professional licence can enhance confidence in your services, making it easier to launch your own business in the industry.
How Much Can I Earn As a Property Manager Each Year?
Property management companies typically charge landlords 8-15% of monthly rent for their services. For instance, if you manage a property with a monthly rent of £1,200, you could earn £120 to £180 each month from that property.
In the UK, the average income for property managers is around £25,000 to £40,000 per year for employed managers, depending on the location. However, if you own the company, your income potential can be higher.
What You Need To Launch Your Property Management Business
To build a successful property management company, start by building a strong network of landlords, letting agents, and trusted service providers like plumbers and electricians. Attending local property events, engaging with potential clients on social media, and joining landlord associations can help you establish valuable connections and showcase your services.
Develop essential skills for property management, including strong communication, organizational abilities, and knowledge of property law. Being able to handle tenant issues effectively and proactively address property problems is crucial.
To streamline operations, consider using property management software, which can automate rent collection, tenant communication, and maintenance scheduling, saving time for growing your business. Some widely used software options in the UK include Arthur Online and Alphaletz.
Marketing your services effectively is key to securing clients. Start by creating a professional website to attract potential clients, set competitive pricing to appeal to landlords, and list your company in property management directories for added visibility. Gathering positive reviews and testimonials will enhance your reputation, making it easier to attract new business. Combining these efforts will help establish your company as a trusted player in the property management industry.
As part of financial management, property managers are also responsible for ensuring timely payments of bills related to the property.
The demand for property management jobs is high, especially in urban areas where the need for professional property management services is growing. This creates numerous job opportunities for those looking to enter the field.
