Professional property management ‘money well spent’

It found:

* 70% of landlords believe that tenants pay higher rent for properties that are professionally managed;
* 68% of landlords believe that average tenancies are longer for property that is professionally managed;
* 71% of landlords believe that tenants take better care of a property that is professionally managed;
* 67% of landlords believe that professional management of property enhances its capital value;
* 75% of landlords would recommend professional property management;
* 61% of landlords questioned employ an agent to manage their property;
* 34% manage the property themselves and 5% of landlords’ properties are managed by a member of their family or friend.;
* Of those who self-manage their rental property, 87% enjoy doing so and 85% are motivated by the cost saving;
* 97% of landlords intend to hold their residential property investments for the next 12 months;
* 54% intend to hold their assets for at least ten years;
* 24% of landlords intend to retain their property investments for the next 20 years or more;
* The average period that residential property investors expect to hold their property investment assets is 12.7 years;
* 36% of investors are considering purchasing additional residential property assets within London over the next 12 months;
* 25% of investors are looking at opportunities in the UK outside of the capital;
* 73% of respondents believe that London prices will be at current levels or higher by this time next year;
* For UK property outside of the capital, 46% expect prices to be at current levels or higher by this time next year;
* Landlords expect London property prices to see an average price increase of 1.9% by this time next year, moderated from an increase of 2.5% cited last quarter, but up on the annual increase of 1.48% that was predicted at the end of Q1 2010;
* The predicted 12-month outlook for UK property prices outside the capital is a fall of 3.15%. This continues the recent trend of worsening expectation (-1.0% predicted at the end of Q2 and -0.58% in Q1 this year);
* The average base rate expectation for Q3 2011 stands at 1.16%, virtually unchanged from the 1.14% outlook that was predicted in Q2 2010.

Neil Young, CEO, Young Group said: "The latest quarterly Young Index survey of residential investment sentiment focuses upon property management.

"In a sector that is characterised by large numbers of ‘amateur’ landlords, it is encouraging to see that they appear to wholeheartedly value professional property management and indicate that they believe it results in higher rents, enhanced capital values, longer tenancies and encourages tenants to take better care of their rental property.

"Landlords undoubtedly still see their property investments as a long-term play, they are not expecting house prices to increase particularly over the coming year – and predict that prices outside London will fall by an average of 3%.

"They expect the base rate to remain well below its long-term average for at least the next 12 months, but there are indications that access to appropriate finance will prevent them from purchasing additional property. Expectation of property asset purchases in London has fallen back from last quarter’s figure, whereas interest in property purchases outside of the capital has increased."

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One thought on “Professional property management ‘money well spent’

  1. Michael Oakes

    You may think that I would say this, but the impact that top notch property management can have on a property asset’s performance can’t be overstated in my opinion!

    Not only does exemplary property management have the potential to increase income returns (by tenants paying top rents, staying longer – so fewer potential voids – and looking after the property to a higher standard – so lower maintenance costs), but taking a longer term view, it can also impact the capital value too.

    There’s a lot to be said for looking at the bigger picture and not just bemoaning the ‘slippage’ from gross to net yield… Pull your property management socks up, and there should be much less to moan about.

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