Landlords could see £59k wiped off their property value

Landlords could see £59,000 wiped off the value of their properties, new research has suggested.

The findings by property management specialist Rushbrook claimed that landlords will see cash leak from their rental properties if they fail to maintain them adequately.

It calculated its figures on applying an estimated capital value impact of between 10% and 15%, based on the effect that a poorly maintained property can have on its market value.

It said that the average buy-to-let property across England is worth an estimated £201,145.

A 10% reduction in value as a result of poor maintenance would equate to a loss of £20,115, while a 15% reduction would see that fall to £30,172.

The financial impact is greatest in London, where the average landlord property is valued at £390,625.

Failing to maintain a rental property there could reduce its value by between £39,063 and £58,594, it suggested,

Property maintenance is one area where delaying expenditure can end up costing considerably more in the long run.”

Roma Sharma, Managing Director of Rushbrook, (pictured), says: “Landlords have faced a considerable increase in the cost and complexity of operating a rental property in recent years and so it’s understandable that many will be looking closely at where they can reduce expenditure.

“However, there’s an important distinction between sensible cost management and creating a false economy, and property maintenance is one area where delaying expenditure can end up costing considerably more in the long run.”

She adds: “A relatively minor issue that is identified and dealt with quickly can often be resolved efficiently, whereas allowing it to deteriorate can result in a much larger repair bill, disruption for the tenant and, over time, a deterioration in the overall condition and value of the property.”

She concludes: “A rental property is a long-term asset and maintaining it to a professional standard is fundamental to protecting both the income it generates today and the capital value a landlord hopes to realise in the future.”