Landlords warned poorly maintained rental properties could cost them thousands

Poorly maintained rental properties could wipe nearly £60,000 off the value of a landlord’s investment in London, new data reveals.

Research by Rushbrook found landlords across England could lose up to £30,172 from the value of the average buy-to-let property if it is not properly maintained.

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

Potential hit is even bigger in London

According to the data, the average landlord property across England is worth an estimated £201,145.

A 10% drop in value due to poor maintenance would wipe £20,115 off its worth, while a 15% fall could cost landlords as much as £30,172.

The potential hit is even bigger in London, where the average landlord property is worth £390,625. A 10% to 15% drop could therefore knock between £39,063 and £58,594 off its value.

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.

The South West ranks third, where poor maintenance could see as much as £34,286 wiped from the value of a landlord’s investment, followed by the East of England at £31,034 and the West Midlands at £28,696.

Cost and complexity of operating a rental property

Roma Sharma, managing director of Rushbrook, explains maintaining rental properties is important.

She said: “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”.

Rental property is a long-term asset

Ms Sharma adds: “For landlords, maintenance should therefore be viewed as part of protecting the performance of their investment rather than simply another ongoing expense.

“This is also where professional property management can add considerable value. Regular oversight, proactive maintenance planning and access to reliable contractors can help identify issues earlier and ensure that money is spent where and when it’s actually required.

“Ultimately, 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.”

The research also reveals even across England’s more affordable rental markets, the potential cost remains substantial. The maximum estimated impact stands at £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.