The Importance of Involving a Surveyor in Property Investment

Your clients come to you for professional advice when it comes to financing their property investment, but where do they turn to understand an accurate current and achievable value for that investment?

After all, arguably the biggest barrier to the success of any property investment is not selecting the wrong finance, but selecting the wrong property, and unrealistic expectations about the rental or capital value a property might be able to achieve can be the difference between a happy client and a disgruntled investor.

With this in mind, establishing a working relationship with a chartered surveyor can help you to help your clients make the right decisions. Here are just a couple of areas where a chartered surveyor could help:

Property refurbishment

For first-time investors in property refurbishment or even experienced property developers who want to reduce speculation to mitigate their risk, there can be many benefits in involving a surveyor early on in the process.
A surveyor will be able to not only establish an accurate value for the property in its existing condition, but also provide unbiased information on the expected capital or rental value once the renovations have been completed, and this can help your clients to consider their favoured exit, which could influence their finance options.

HMOs

Establishing an accurate valuation for an HMO (Houses in multiple occupation) is trickier than a standard property as there are more things to consider and fewer comparables. A key element of the valuation is the achievable rental income and yield of the HMO and so a surveyor will consider the location and potential to sustain regular letting of individual rooms. This means thinking about whether the property is near a transport hub, university or hospital and the realistic rental price for each of the rooms.

A surveyor can also check against the local authority Article 4 direction to ensure that the HMO does not contravene any local planning regulations and that the property can be let on a room by room basis.

In addition to considering regulation, local authority requirements and the RICS Red Book guidelines, a surveyor may also be able to consult on the specific criteria of different lenders who will have their own guidance notes to take into account, regarding the valuation of an HMO property.

Establishing a working relationship with a surveyor can therefore help to increase your conversions and potentially also grow your business.

If your clients are able to make more informed investments that help them to become more successful, they will also be more likely to investigate new opportunities, which means further funding and more business for you.

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About the author

Joe Arnold avatar

Joe Arnold

Joe is the guiding force behind Arnold & Baldwin and has overall responsibility for all commercial and residential surveys and valuations. Passionate about delivering the highest quality products at the fairest prices possible, he has been consistently searching for new and innovative client-focused services since founding the company with Jobie in 2007

Read more about Joe Arnold

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CLARE MCSHANE

Professional, efficient surveyors. Get the job done in a timely manner, had our survey back within 5 days of inspection. All team members I spoke with (Tiffany and Billy) were really lovely. Highly recommend. :)

RICARDO OLIVEIRA

I have only just started working with Stephen and he has already demonstrated the high levels of customer attention and dedication that this company has. The first impression he has caused is such that made me write this review. I have no doubt that the continuous service will be of same level. Looking forward to working further with Stephen. Well done!

Steve Kenny

Lease extension - I found Daniel Grove very professional and had an excellent understanding of all aspects relating to this transaction. Advice was invaluable, and it was nice to come across someone who did exactly what they said they were going to do. Would not hesitate in recommending the firm and Daniel to anyone who has a lease to extend.

Petros Kyrkilis

Amazing job and fully professional treatment. The surveyor went above and beyond to check for everything, when he could have easily claim lack of access. In addition he was more than happy to answer questions over the phone and be there to explain the steps.

Lynn Wilson

Within 48 hours I received my detailed report from Joe Arnold which enabled me to see the property as it was and not through rose-tinted glasses! The report highlighted areas where money might need to be spent and provided guidance on questions for my solicitor - just what I needed. Overall, the survey enabled me to re-assess my offer and in this respect was invaluable. Thank you for a friendly and professional service.

Mark Roberts

100% choose this company. As first time buyers we had a mortgage valuation which said the house was fine. The Arnold & Baldwin survey found over £30,000 of problems. Holes in the roof with daylight visible, damp, woodworm, broken sash windows and poor electrics. This company helped us renegotiate and save a fortune.

Joebun

Arnold & Baldwin came recommended and I’ve got to say they were brilliant - not just in identifying issues with the property I was looking at but in the way they kept me informed and up to date (ie picking up the phone instead of just posting / emailing communications with you). After dealing with estate agents for so long, it’s nice to have someone who is genuinely on your side.

Kamal Rahman

From my initial interaction with the firm I found them to be prompt, courteous and helpful. I received a detailed Homebuyers report within a week of instructing and was given the opportunity to talk it through with the attending surveyour. Overall excellent service all round, would certainly recommend this firm.

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