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Hope this message finds you all well.
Apologies in advance if this is a little long winded.
I have decided to self-manage my BLT after years of using an agent. My intention is to manage through my LTD Co which was primarily set up for my property flip business. So, the Ltd Co will manage my property (SIC Code 68320) and carry on flip business (SIC Code 68100). I have spoken to my accountant who has said its ok provided I maintain separate accounts.
I have now been approached by my 2 sisters (each has 1 BLT) and my parents (1 BLT) to also manage their properties. So, all in all I will be managing 4 properties, within the next 3 to 6 months. As it currently stands, 3 of the properties are tenanted and being fully managed. I will therefore have to terminate the management agreements (serve notice etc) and have the tenant deposits transferred.
My questions/concerns are:
1. As my intention is to only manage these 4 properties does the managing LTD Co have to be registered with an independent redress scheme?
2. Am I right in thinking that the managing LTD Co will act as an agent for my siblings/parents? If so, can managing LTD Co register as a member of RLA instead of my siblings/parents?
3. If my assumption at 2 above is correct, can managing LTD Co register Tenant Deposits (Insured Scheme) under its name even though the current AST's are in personal names of my sisters/parents.
4. Does anyone have a sample managing agent agreement I can use?
5. Any opinions/views on whether it would be more cost effective to manage the properties as an individual as oppose to through a managing LTD Co.
Thanks in advance for your comments.
Have a nice day!
Good stuff. I agree with your accountant. I cannot answer all your questions so here it goes as best I can.
1) Not my area, sorry
2) This will depend on the contracts. You should always make it clear that you are acting as agent (or you will be deemed not to be). No idea re RLA. Call them.
3) I think as an agent you use a different scheme for agents but I may be wrong. It has to be doable as that is what most agents do.
5) There may be some VAT angle to consider if you have irrecoverable VAT somewhere in your empire. Income tax wise it will depend on other factors and of course don't forget NIC if you do it as an individual. Your accountant should be able to advise you.
Tax advisor and mortgage broker
Thanks for your input, appreciated!
I am in the same boat, want to manage my OWN by setting up LTD company for reasons [a] Tax Efficiency, [b] Avoid agents who charge too much, [c] Redress Scheme for Landlords - might as well manage my Property if I will undergo through all these scheme?.
Most landlords do not have a Property or Real Estate related qualifications, so I would like to add to the question above,  Is there any minimum national Qualification needed to manage OWN properties using LTD company? Since OWN and LTD Company is a separate entity, I guess it will be seen as normal Limited Lettings and Property Management Company. I checked my Agents, and they are ARLA Propertymark protected, The Property Ombudsman (Redress), and Approved Trading Standards UK. But some Property Mgt who goes with '.Org' website doesn't have these.
Good point Richard
not sure i can answer your questions but i have one for you if you dont mind me asking.
why have you decided to manage the units yourself?
I feel the agents don't do anything most of the time, when they do, they charge too much.
I think suitably qualified agents do a tremendous job and are worth every penny of the 10% I pay them.Only a landlord who doesn't understand the amount of work involved in managing properties, or who doesn't value their own time would think that reputable and professionally qualified agents charge too much imho.Mary Latham, a landlord of over 30 years, stated "A Letting Agent is worth 10% of my annual rent to get back 90% of the time I spend on my properties".
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I understand not all agents are the same. My comments are based on my situation and my experience.
Thanks for your input.
I understand. Your experience highlights why it is so vital to "vet" any potential lettings agent.How to vet a lettings agent ... 12 questions to ask
I can understand that. The management side of an agents buisness can often be the least profitable from a time and energy view when compared to lettings and sales.
i run a property management company called The Happy Tenant Company and we soley focuss on just managing the property and we often have landlords come over to us for various reasons so I'm always interested in their feedback.