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Manage your property the relaxed way – Call us today!
CALL US ON 01613693723 MON TO SAT 08:00AM – 18:00PM
Mon-Sat Customer Support
Mon-Sat Customer Support
Investing in property is no different to investing in the stock market or the commodities or derivatives markets when it comes to risk management.
The largest, most successful hedge funds and investment firms have entire departments dedicated to risk management into which they channel tens or hundreds of millions of pounds every year.
Whether you are the landlord of a single dwelling, or a property manager responsible for a large portfolio of properties, the principal remains the same. Manage your risk to improve your reward.
When it comes to risk management with property investments the goal is to minimise the potential for financial loss or the incurrence of legal hazards.
Property Risk Management is usually focused on three practices
An example of risk avoidance would be opting not to purchase an unfit property as a means of increased speculation.
Refers to ensuring you take command of everything you are able to control. Such as ensuring you conduct regular inspections on your property for things like electrical installations, plumbing and structural integrity to prevent problems before they occur.
Finding ways to pass any financial liabilities onto third parties is another prudent step in property risk management and this is usually done through various insurances (property insurance, landlord insurance, liability insurance etc.)
Tenant protections have increased significantly in recent times and this can often present problems for landlords without access to expert legal advice. Whilst it is hoped that these situations can be resolved without legal recourse, if a tenant refuses to pay the rent over an extended period of time, it may be necessary for you to seek a court-ordered eviction which is both a costly and increasingly lengthy process. By entering into a rent guarantee insurance scheme you can mitigate much if not all of the cost from the loss of income with support available for up to 18 months.
Whether property damage is inflicted “au natural” or by malicious actions or vandalism, the cost and responsibility for repairs fall on you.
The first way to avoid problems like this occurring is to ensure that your property is well-maintained and in keeping with legal requirements.
The next step is ensuring you have a comprehensive property insurance policy that will cover these expenses should they occur.
Becoming a landlord opens you up to potential legal claims. If your property falls short of legal requirements such as minimum heating or electrical installation standards then you may be liable.
As a landlord, it is your responsibility to ensure that your property meets all legal requirements.
A comprehensive landlord insurance policy will normally include a provision to cover legal expenses which will be adequate to meet most demands.
When it comes to the property market “Happy tenants, pay no penance!”
The primary way to minimise your potential risk is to provide a functional, happy home for the tenants. This is achieved by making sure everything is as it should be, which requires you to conduct regular inspections and maintenance of your property.<br/><br/>
Of course, this will not always suffice and some number of “bad” tenants are inevitable in the world of rented homes.
Tenant screening, therefore, is fundamental in the process of securing new tenants. By conducting detailed background and credit checks you can go a long way towards ensuring your property is inhabited by low-risk occupants.
MMC incorporates all of our risk management principles into our property management services. Our service will:
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