As more and more would-be home buyers turn to renting, more and more landlords are turning to rental management companies as they grow their portfolios. This is according to a new report by property management company Rushbrook and Rathbone, which provides management services to lettings agents and landlords.
The Hertfordshire based firm has recorded strong growth in the number of landlords actively growing their portfolios and looking for increased lettings management services as a result, reporting a 20% increase in demand for its services.
Sarah Rushbrook, Managing Director of Rushbrook & Rathbone, says "with so much economic unrest, landlords are taking the opportunity to capitalise on the one growing market, buy to let, where demand for rental properties from those who cannot afford to enter into home ownership has increased tenfold."
Successful landlords requiring more resources and manpower to maintain growing portfolios she explained, and talked about the accidental landlords who have gone on to do very well.
"Many still work full time jobs and simply don't have the time to deal with tenant or agent issues, which can include anything from rent collection and arrears, to maintenance issues and inventories," she said.
It is nice for the lettings industry that demand for their services is growing, but the main story for the larger industry is that portfolios are growing.
According to LSL property services' rents rose for the first time in 3 months in April, increasing by 0.5% on the month. However, the three month lull had an effect on annual growth, with rents 2.4% higher in April than the previous year, compared to 2.7% higher in March.
- Monday 25 June 2012