Landlords urged to keep up with running repairs
Poor property maintenance could not only cost landlords tenants but could also wipe around £30k off their investment and twice that in London.
Research by Rushbrook found that a 10% reduction in value caused by poor property maintenance could cost £20,115 on the average rental property across England worth an estimated £201,145, but a 15% reduction could see the property investment fall by as much as £30,172.
Potential losses are even higher in London, where the average landlord-specific property value stands at £390,625 and poor maintenance can reduce its worth by between £39,063 (10%) and £58,594 (15%).
The potential damage to a property’s value is similar for landlords in the South East, where losses could reach £42,857 based on the region’s average landlord property value of £285,714.
That’s followed by the South West with a potential £34,286 loss; the East of England at £31,034 and the West Midlands at £28,696.
Potential losses to investment value are also high in more affordable rental markets, hitting £26,163 in the East Midlands, £22,959 in the North East, £21,226 in Yorkshire and the Humber and £21,196 in the North West.
The true cost of skimping on maintenance
Roma Sharma, managing director of Rushbrook, said the figures show the true cost for landlords who try to skimp on regular and proactive maintenance. “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.
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 warned landlords to consider maintenance as an essential way to protect the performance of their investment.
