Another Successful Let in Sylvian Suites

There is a significant difference between simply finding a tenant and managing a property successfully.

For landlords, the period between one tenant leaving and another moving in can be one of the most expensive parts of owning an investment property.  Every week a property sits empty represents lost rental income, while the property itself still carries its usual costs.

At Richardsons, we believe good property management is about being proactive rather than simply waiting for a tenancy to end before looking for the next one.

Our recent activity at Sylvian Suites is a good example.

Having recently completed the sale of a property within the development, we have now agreed a second letting at Sylvian Suites within just three weeks.  More importantly, on both occasions the new offer was agreed before the outgoing tenant had vacated the property.

For the landlords involved, that means avoiding a potentially lengthy void period and moving directly from one tenancy to the next.

Planning for the next tenancy before the current one ends

One of the simplest ways to reduce void periods is also one of the most frequently overlooked: start early.

Waiting until a tenant has handed back the keys before beginning the search for a new occupier can leave a property sitting empty for weeks.  By the time the property is photographed, advertised, viewed, referenced and a tenancy agreed, a landlord can have already lost a significant amount of rental income.

Instead, where appropriate, we prefer to begin the process while the existing tenancy is still in place.

That does not mean compromising the outgoing tenant's occupation or rushing the process.  It means having the next steps underway so that prospective tenants can be identified, enquiries dealt with and viewings arranged at the appropriate time.

In the case of these two Sylvian Suites properties, that approach allowed us to secure new tenants before the existing tenants had even left.

The result is a smoother transition for everyone involved - and, most importantly, less time with the property producing no income.

From sale to letting

The recent activity at Sylvian Suites also demonstrates another advantage of working with an agency that operates across both sales and lettings.

Our involvement in the development began with a sale, which we recently completed.  Since then, we have also been able to assist with lettings within the same development.

For landlords, that broader market knowledge can be valuable.

An agent dealing exclusively with a property as a rental may know the current rental market, but an agency active across sales and lettings has a much wider view of how a development is performing, what properties are competing for attention and what prospective purchasers and tenants are looking for.

It also means that relationships built through one part of the property market can often create opportunities elsewhere.

A tenant looking for a rental may ultimately become a purchaser.  A purchaser may later become a landlord.  An existing landlord may acquire another property and require both sales and management advice.

Property is rarely as neatly divided into separate categories as the industry sometimes makes it appear.

Professional management is about more than finding a tenant

For prospective landlords, the choice of agent should not simply come down to who can put a property online the fastest.

Finding a tenant is only one part of the process.

A professional letting service should begin with understanding the property, assessing its position in the rental market and presenting it properly to prospective tenants.  It should continue through enquiries, viewings, negotiation, referencing and the preparation of the tenancy, and then into the ongoing management of the relationship where a full management service is required.

Just as importantly, landlords need an agent who understands that their property is an investment.

The objective is not simply to secure a tenancy at any price.  It is to find an appropriate tenant, achieve a sensible rental value and minimise unnecessary periods without income, while protecting the condition and long-term value of the property.

That requires experience, communication and attention to detail.

Reducing voids protects rental returns

Void periods are an unavoidable possibility for landlords, but they are not always unavoidable for as long as they can sometimes become.

A property generating £2,000 per month, for example, does not simply lose £2,000 if it sits empty for one month.  The landlord may also continue paying service charges, rates, mortgage costs and other expenses while receiving no rental income.

This is why the timing of a new tenancy matters.

The two recent Sylvian Suites lettings are a useful illustration.  By agreeing the incoming tenants before the departing tenants left, both landlords were able to avoid the uncertainty of an extended gap between tenancies.

It is a relatively straightforward principle, but one that can make a meaningful difference to an investment property's performance over time.

A proactive approach to property

For landlords with a single investment property, having the right agent can make ownership considerably easier.  For those with a portfolio, the importance of having a professional and consistent approach becomes even greater.

Managing several properties means keeping track of different tenancy dates, rental values, maintenance requirements, compliance matters and tenant relationships.  It also means identifying opportunities to reduce downtime and ensure that each property is performing as it should.

This is where an experienced professional agent can add genuine value.

At Richardsons, we see our role as being more than simply placing an advert and waiting for enquiries.  We want to understand the landlord's objectives, the property itself and the market in which it competes, then use that knowledge to manage the process properly.

The two recent Sylvian Suites lettings - alongside the sale we completed within the development - are a good example of that approach in action.

Two new tenancies agreed within three weeks, both secured before the previous tenants had vacated, helping the landlords move from one income-producing tenancy to the next without an unnecessary void.

For landlords, that is ultimately what professional property management should deliver: less uncertainty, fewer unnecessary voids and a property being actively looked after by people who understand the market.

If you own a property in Gibraltar that you are considering letting, or you have a portfolio that would benefit from a more proactive approach to management, we would be pleased to discuss how Richardsons can help.