Given that there is such a high level of demand for rented property and business hubs in the current economic climate, it may be that many property management firms and professionals think that their own market will provide them with enough work and services. There is no doubt that this is an ideal; time to operate in this business and if you are looking to expand your empire, you may be able to do so without stretching too far, financially or geographically.
For many firms, this is ideal but there is a concern when it comes to staying in one local area.
Developing your brand and reputation in one area is a sensible idea, but in the long term, it may cause some problems. These are some of the reasons why a firm that specialises in just one local area could be in trouble in the long term:
- If something goes wrong, your local reputation could be tarnished quickly
- The local market could collapse
- Rival firm(s) may take over the local market
- Local legislation may force changes on you that negatively impact on your business.
It is far more sensible to expand into different areas and this has been the action of one property management firm recently. Lomond Capital has snapped up a major foothold in the Birmingham market thanks to their purchase of an agency, for a fee which is yet to be disclosed. The fact that there are agencies across the country, perhaps in a position to be taken over for an attractive fee, provides property management firms with a quick and easy way to expand the localities they are found in.
This will provide a good starting point for any firm that is looking to be found in a number of different regions across the country.
Many property experts are looking to expand
This purchase was a sizable one for Lomond Capital as it is believed that the lettings firm had over 1,000 properties with a value of £250m. The company has snapped up offices in Sutton Coldfield, in the city centre of Birmingham and in Solihull, so there has been a great deal of assets picked up alongside all of the properties in the firm’s portfolio.
It is not as though this sale is the only example of the property management firm snapping up the rental portfolio from an estate agent. Lomond Capital’s team based in the Stonehouse area of Aberdeen in Scotland have arranged a deal to move into the St Andrews area of the country. This has been done by taking over the rental properties from Pagan Osborne.
This means that the Stonehouse arm of the firm has more than 2,000 properties under their control, and these properties are believed to have a collective value of close to £450m. This isn’t small change, and it shows what can be achieved through the developing of a property portfolio.
Lomond Capital has achieved great success
The company now manages close to 9,000 properties in 4 UK cities and the total value of these properties is said to be close to £2 billion. While there is no need for a property management company to grow to this size, it is clear that many more people are turning to property management firms for support.
Whether you are an individual looking for assistance in letting out a firm or a firm holds a small number of properties, there is a lot to be said for turning to the experts and getting on board with the professionals that know what they are doing.
When you think that end users demand a higher level of service, it is likely that the demand for the services provided by property management experts will rise over the years. This means that getting in before the market is too bloated or the best firms have a full portfolio will be a sensible idea. There is a great deal to be said for working with the experts, no matter what sort of situation or area you are in.
The work of a property management firm brings a great deal of benefit to individuals and letting agents across the country and given the nature of the UK property market, it is likely that their role and influence will continue for many years to come.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 8 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.