London landlords say professional property management adds value

Thursday 27th October 2011

London landlords value agents’ services highly, with over three-quarters (76.6%) believing that tenants will pay more rent for properties that are professionally managed.

In addition, 82.9% think that average tenancies are longer for property that is professionally managed; 73% also believe that professional management of property enhances its capital value; and 81.3% believe that tenants take better care of a property that is professionally managed.

Even landlords who manage their own properties need little convincing that professional property management has value: 50% of those who currently manage their own properties recommend that investors use professional property managers.
 
The findings are from Young Group, a property group which has its own lettings agency, and which looks at landlords’ attitudes each year.

Neil Young, CEO of Young Group and lettings agency Young London, said: “As the private rented sector continues to grow, it is particularly heartening to see that professional property management – and its impact on asset value and income returns – is recognised by the investment community.
 
“It is encouraging to see that they value professional property management and believe it results in higher rents, enhanced capital values, longer tenancies and encourages tenants to take better care of their rental property.”

The survey also found that most landlords (85.9%) plan to hold their assets for at least ten years, and that one-third are considering additional purchases of residential property within London over the next year.

Few expect London property prices to drop, with 78.6% of respondents believing that London prices will be at current levels or higher by this time next year. They anticipate further rent rises.