No matter what line of business you are in, if you want to be successful, you will need a team to support you. So if you are operating as a self-managing landlord with no staff, you will need to find your support team from external parties – typically other business owners or self-employed persons.
Depending on the skills that you personally bring to the business, the trades/businesses you will likely need to draw into your day-to-day management power team are:
- cleaner
- gardener
- white goods engineer
- plumber
- gas engineer
- decorator
- general maintenance / handyman
- electrician
- internet systems expert
- fire safety expert
- virtual assistant
- accountant
- bookkeeper
- web developer
- photographer
- stylist / staging agent
- viewing agent
- property manager
- property law advisor / consultant or RLA / NLA advise team
I recommend having one or two main businesses that you deal with for each trade, but to also build relations with one or two other back up firms per trade, and keep their details on your contacts list too.
How to choose the best tradespeople to work with
Some landlords ask around their network for referrals, however I tend to choose tradespeople differently. I like to research different local companies on the internet first, checking their portfolios of work, the professionalism of their website, the wording they use and how they explain what they do, as well as their pricing structures. Then, when I call the shortlisted companies, I let the tradesperson educate me in their area of work. Ask questions. The more I learn, the more able I am to determine the difference between high quality, low quality and what constitutes the middle ground. You want to hire an expert in their field, someone with vast experience, or limitless passion for their craft.
Let them explain to you what you get for your money. The more detail the better.
If I later see or hear that someone I respect (landlord or otherwise) has used the same company with positive results, it will be a bonus.
I’ve been using this approach to hiring tradespeople, experts and suppliers for as long as I can remember, and have had overall great success with my choices. In contrast, those I have hired on the back of someone else’s recommendation alone have not always gone successfully.
How to build strong relations with your power team
When you set up a landlording business, you’re in it for the long term. So if you want to be able to rely on other businesses, to encourage them to care for your properties, your tenants, your accounts etc for more than just a one-off job, you need to build good relations with them.
I’ve seen many landlords take the approach of always screwing trades down as far as possible on their prices. Perhaps these landlords are natural bargain hunters or natural negotiators, which, no doubt, are great skills to have. But if these skills are used when trying to build long-term relations with a business you want to work with, or a business you hope will provide a great service to you, then I recommend trying a very different approach instead.
I recommend simply weighing up what the different short-listed professionals bring to the table for their standard fee, and choose the one that, in your opinion, delivers the best value for their service. No negotiations – unless you have substantial volume.
This demonstrates to the tradesperson that you respect their years of training and experience, you value the funds they have invested into specialist tools, systems and programs, and you appreciate the value they place on their time.
Once you have chosen a business to work with, communicate clearly with them, trust them to get on with the work you have hired them to do, understand that you are not their only client so give them space to serve others too. And always pay them promptly.
“If everyone is moving forward together, success takes care of itself” – Henry Ford
Landlords have a bad reputation – with trades, with letting and managing agents, and with accountants and bookkeepers too. Landlords are known for wanting the quickest repair for the cheapest price, they want their team to be at their beck and call any time of day, they want the biggest bang for their buck – often without any consideration for longevity, durability, or quality of workmanship. Or worse, they want the best of quality for the cheapest of prices.
Don’t be one of these landlords.
Having this kind of attitude will damage your ability to build good long-term relations with your power team, so instead take the route of choosing skilled and knowledgeable businesses for your team, trust and value their input, communicate with respect and remunerate them well and on time.
If you follow these simple suggestions, your HMO power team will always pick up the phone to you, find time for you, and treat you, your properties and your tenants with respect – for the long term.
Let’s change their perspective of us, build stronger relations and build better, more profitable businesses as a result.