Recent news has reported that the value of property owned by buy-to-let investors is catching up with the value of the workforce’s pension savings. This is strong evidence of the fast-paced boom of the buy-to-let market, considering how many years it has taken to build up the pension savings.
The value of houses and flats owned by landlords has reached £1.25 trillion, close to the £1.6 trillion in workers’ pension schemes. The huge growth in value has mainly been caused by property investors wishing to capitalise on rising rents and house prices.
However, many commentators are concerned with this news; some are arguing that many landlords fail to plan effectively, and do not really understand the property market they are trying to stake a claim in. Lack of planning links to lack of coordination and communication, a problem which web based property management software can easily solve.
Such arguments are bolstered by the fact that many landlords fell into their role ‘accidentally’, either through letting out a property they once lived in or one they inherited.
BM Solutions, Britain’s biggest landlord lender and part of Lloyd’s Banking Group, conducted research amongst professional landlords i.e. those who own around eight properties that bring in an annual rent of £60,000. They commented that “one in three do not have an exit strategy or a financial or business plan.”
Platinum Property Partnernship’s research, based on 1000 interviews, revealed that one in five landlords didn’t know the rental yield of their investment, and almost the same amount did not know how to calculate it.
So, whilst there is clear evidence that the buy-to-let market is thriving, opening up many doors for existing property managers and landlords to build upon their portfolios, a tool to help them plan efficiently is urgently needed.
This is where Arthur can help – Arthur is the best property management software on the market, creating and sustaining seamless communication between all parties involved in property. The software prevents poor planning and miscommunication, and has the power to revolutionise the buy-to-let market.
If you are a property manager, property owner, landlord or letting agent, your business will save time and money by using Arthur. Try out the free Arthur Demo today to see how!