Investing in Maintenance | MIH London Property Management

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Unlocking Financial Returns in London’s Rental Market

Changes in policy and regulations have made extracting value from block property ownership more challenging over the last few years. What once looked like a good investment has become less easy to leverage with some wondering if it’s still worthwhile. Yet at the same time, demand for property in the capital remains high, is set to remain so and the market is buoyant and competitive.

So how do you square the circle?

The answer lies in the longer-term gains. Recent years have seen quite significant changes in building safety regulations and renters’ rights. With such radical changes having now been (or about to be) instated, it seems likely that this aspect will plateau at the current level with only minor adjustments anticipated in the foreseeable future.

Planned preventative maintenance

Once new requirements have been met, the safety addressed and the quality and standards addressed, a plan should be made for a longer period. Each building should be assessed for potential maintenance needs for the next 10 years. The plan should include structural, regulatory and decorative requirements.

Planned maintenance tasks to consider:

Roof repair or replacement
Stairwells
Lifts
Exterior paintwork
Fire alarms
Building Safety
Internal décor
Shared areas
Windows and EPC rating
Lighting and electricity
Electric vehicle charging

Reactive v proactive

There is clearly no benefit in avoiding the work needed and allowing the building to deteriorate. Far better to face matters head on and address them in a structured way. Budgeting and pre-planning are the best approach tackling any projects in order of priority and with a proactive stance.

Proactive maintenance prevents costly repairs:

Planned maintenance executed in a timely fashion is cheaper than emergency call outs and unplanned fixes.
Planning allows for comparative quotations, consultation with tenants and for funds to be amassed in advance and a managed implementation that gives all parties time to prepare and sets expectations.
Stats show that renovated properties command higher rent compared to poorly maintained ones in the same area.
Well-maintained properties have shorter vacancy periods.
Tenants prefer properties that show care and attention to detail, leading to higher retention rates.

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On average, landlords in London spend about 24% of their rental income on property maintenance, indicating that nearly a quarter of rental earnings are allocated to upkeep.” Source: Property reporter

The alternative reactive approach is the path to strife. Unhappy tenants, lack of funds when you need them, long waits for action, unsafe buildings, and so on – the pressure and chaos of which will arrive at the landlord’s doorstep.

Long term maintenance improves resale value

By keeping on top of maintenance as an on-going process, the value of your investment is protected. Failure to manage the repair-needs of your building can have knock on effects with one simple problem e.g. a leak, giving rise to more complex problems e.g. damp. Dealing with structural repairs can seem costly and prohibitive, but it is a mistake to ignore this kind of fundamental work. Think long term and plan well.

Other areas that tend to be side-stepped are mechanical works such as lifts. Lifts are essential to residents particularly parents with children, the elderly or disabled. Accessibility is a legal matter and ignoring this may leave you not only in breach of the Equality Act 2010, but with very disgruntled tenants.

Organising major works on a timeline spreads the cost making it more predictable and manageable. Attending to lift maintenance on a scheduled basis such as an annual check will help avoid break downs.

If previous statistics hold true, the following data provides a model of the potential gains over time.

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Over the past decade, London’s property market has experienced significant growth. According to data from LandTech, house prices in London increased by approximately 73% between 2012 and 2022.” Source Land.tech

Take the proactive approach with MIH

Ultimately, proactive investment in property maintenance is not just an expense; it’s a strategic move that enhances financial returns in London’s prime rental market. At MIH we can help you plan and manage these process and also give helpful advice on funding, be that how best to approach the maintenance of your block and also possible government grants for qualifying issues such as unsafe cladding and insulation.

What our clients say

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After years of frustration with our previous agent, we switched to MIH. The transition went smoothly, and within weeks they were tackling major issues for our 22-flat building, from interior redecoration to securing funding for essential cladding work.” H. Davies

“

Notably professional and efficient in a sector not known for it – recommend MIH wholeheartedly if you are looking for a Managing agent who gets things done, and gets them done properly.” Alex U.