The property industry in the UK has been regaining lost ground and is slowly recovering from a long global recession and while the signs of growth are slow, they are promising.
Something that has come to light recently has been the increased demand for property management services and not just in London, where values remain considerably higher than the rest of the regions.
So why are owners keen to contract property management functions to a third party? There may be several reasons including:-
- More businesses regard rental properties as the long term prospect for their organisation perhaps due to stricter lending criteria and need for larger deposits, which is restricting demand for freehold ownership. This has led to an increase in demand for rental properties which in turn has boosted expectations for property standards and maintenance.
- The legislation surrounding lettings, rentals and health and safety regulations is increasingly lengthy, complex and complicated. Landlords would rather have experts attend to such matters and this is where commercial property experts and advisors come in. They are there to ensure that the interests of their clients and that of their tenants are properly looked after.
- Tenants themselves can also contract out the management functions if their buildings to firms providing facilities management functions.
Property management services actually encompass many services, not only rent, insurance and service charge collection but can include day to day running and operational handling of the property, safety inspections, 24 hour call out maintenance and service and utilities management. At the same time the management of the property on behalf of a landlord can and should include advice on how to improve rental income and capital appreciation.
Having a property managed by professionals can greatly improve the asset performance of a commercial property investment. Call Barker Storey Matthews for an initial consultation.