Landlords who fail to keep their rental properties in good condition could see as much as £30,172 wiped from the value of an average buy-to-let.

Property management firm Rushbrook analysed landlord-specific property values across each English region and applied an estimated capital value impact of 10-15%, based on the potential impact that a neglected or poorly maintained property can have on its eventual market value.

With an average landlord property across England worth an estimated £201,145, a 15% reduction would see the landlord’s investment fall in value by as much as £30,172 and even more in London. The average landlord-specific property is worth £390,625 in the capital and, based on the same 10% to 15% range, failing to adequately maintain a rental property could reduce its value by between £39,063 and £58,594.

Capital

Landlords in the South East also have a considerable amount of capital to protect, with the potential value impact climbing as high as £42,857 based on the region’s average landlord property value of £285,714.

Rushbrook believes that, at a time when landlords are facing increasing operational and regulatory costs, ongoing property maintenance is one area where cutting expenditure can prove to be a false economy.

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

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

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