Why Poor Design Is Costing PRS Landlords More Than They Realise
- Amanda Woodward
- Jan 14
- 8 min read
In the hyper-competitive UK Private Rented Sector (PRS), particularly within the thriving economic corridors of Birmingham and Burton-on-Trent, the standard of interior design is no longer a superficial “extra.” It has become a core financial metric, a non negotiable component of asset performance. As we navigate a market defined by discerning tenants and stringent legislation, the data is unequivocal: properties that rely on outdated, “lowest-common-denominator” aesthetics are suffering from higher tenant turnover, spiralling maintenance costs, and significant, avoidable yield compression.
For the modern landlord, understanding the direct, causal link between design and the balance sheet is essential. Poor design is not merely an aesthetic failure; it is a recurring financial leak, a silent killer of profitability. This article provides a strategic breakdown of why a design-led approach is no longer optional for serious property investors.
The Economics of First Impressions and Rental Premiums
The “first impression” of a rental property starts long before a physical viewing. In an era of digital-first searches on platforms like Rightmove and Zoopla, coupled with the use of high-performance CRM systems, your property’s design is its primary marketing tool. It is the hook that captures attention in a crowded marketplace.
The –% Yield Gap: A Data-Driven Reality
Market data consistently shows that properties with high-quality, modern interiors can command a rental premium of % to % over comparable, un-refreshed units in the same postcode. In the Midlands market, where tenant expectations are being recalibrated by the influx of high-spec Build-to-Rent (BTR) developments, a “standard” buy-to-let that hasn’t been professionally updated in five years is effectively competing at the bottom of the market. It is a race to the bottom that no landlord can afford to win.
Definitional Quality vs. Generic Utility
High-quality design is not about expensive, frivolous additions. It refers to a strategic selection of durable materials, cohesive and psychologically informed colour palettes, and functional, intuitive layouts. It is the critical difference between a property that feels like a transient “rental product” and one that feels like a “home.” Tenants who perceive a
property as high-value are statistically more likely to accept higher initial rents and subsequent annual increases because the perceived utility and emotional comfort justify the cost. This is the foundation of long-term, sustainable rental income.
The Hidden Cost of High Tenant Turnover
One of the most significant, yet often overlooked, costs of poor design is the tenant “churn” rate. A tenant who does not feel an emotional connection to their living space— or who finds the layout impractical and frustrating—is a tenant who is constantly, passively looking for their next move. They are never truly settled.
The Psychology of Tenant Retention
Thoughtful design, particularly in Houses in Multiple Occupation (HMOs) and Serviced Accommodation, fosters a sense of wellbeing and belonging. When a property includes dedicated workspaces for hybrid working, ergonomic kitchen layouts that make daily life easier, and “boutique-hotel” style aesthetics that feel aspirational, tenants are more likely to renew their contracts. They are not just renting a room; they are investing in a lifestyle.
In a market shaped by the permanence of hybrid working, a property that fails to provide an inspiring and functional environment for home working is fundamentally flawed. Every time a tenant moves out due to “uninspiring” surroundings, the landlord incurs a cascade of costs:
• Marketing Fees: The cost of listing the property on major portals.
• Referencing and Admin Costs: The expense of vetting new applicants. • Void Periods: The most damaging cost—weeks or even months where the property sits empty, generating zero income.
• Deep Cleaning and Minor Repairs: The cost of preparing the property for the next occupant.
A design-led approach can extend the average tenancy length by to months, directly and dramatically boosting the Net Operating Income (NOI).
Maintenance: The "Design-for-Durability" Framework
Landlords often choose “cheap” materials to save on upfront renovation costs, believing it to be a prudent financial decision. However, this is a false economy. Poor design choices in materials lead to a cycle of reactive, expensive maintenance that far exceeds the initial savings.
Technical Errors in Material Selection
Poor design often involves choosing the wrong materials for high-traffic environments. Examples are rife in the PRS:
• Low-grade carpets in HMO hallways that require professional cleaning every six months and complete replacement every - months.
• Inappropriate paint finishes (such as basic matt) that cannot be wiped down, necessitating a full repaint between every tenancy.
• Poorly configured plumbing and cabinetry in kitchens that lead to water damage behind units because they were “fitted to a price” rather than designed for longevity.
The "Golden Thread" of Asset Management
Investing in durable, mid-to-high-range fixtures (such as luxury vinyl tile flooring, quartz worktops, or high-performance integrated appliances) reduces the frequency of work orders and emergency call-outs. By designing for durability, landlords move from a model of expensive, ad-hoc repairs to a predictable, long-term asset management strategy. This protects capital value and ensures cash flow is not eroded by constant, unforeseen maintenance bills.
Design as a Compliance Shield
With the full implementation of the Renters (Reform) Bill and the Decent Homes Standard in the PRS, design is now a critical compliance requirement. Good design is no longer just about attracting tenants; it is about protecting landlords from significant legal and financial penalties.
Damp, Mould, and Ventilation
Poor design often overlooks the “invisible” elements of a property, such as ventilation and thermal bridging. A room that is aesthetically pleasing but poorly ventilated will inevitably suffer from damp and mould—issues that now carry heavy penalties under Awaab’s Law. Proactive design integrates solutions like heat recovery ventilation (MVHR) or high-spec extraction systems, ensuring the property remains compliant and the tenant remains healthy.
Fire Safety and Licensing in the Midlands
In Birmingham and Burton, local authority enforcement for HMO licensing is rigorous and becoming more so. Design must account for fire-rated doors, specific room sizing, and communal area requirements from the outset. A poorly designed layout that fails a council
inspection can lead to costly retrospective alterations and the loss of rental income while the property is “offline.”
From "Landlord" to "Provider": The Advisory Advantage
The shift from a traditional let to a high-performing property asset requires more than a coat of paint. It requires a shift in mindset and strategy. Many landlords are stuck in a cycle of “patch-and-repair” because they lack a cohesive design and management framework.
Why Advisory-Led Oversight Matters
Professional management doesn’t just collect rent; it advises on asset improvement and long-term value creation. In the Midlands, we are seeing a clear divide between two types of landlords:
The "Sinking Asset" Landlord: Uses the cheapest materials, ignores design trends, and suffers from falling yields and increasing legislation fatigue.
The "Strategic Investor": Understands that a £, investment in a design-led refurbishment can add £, to the capital value and £ per month to the rental income.
Local knowledge of the Birmingham and Burton markets is critical here. Knowing what a corporate contractor in Burton expects versus a medical professional in Birmingham’s Jewellery Quarter allows for “target-market design” that ensures maximum occupancy and premium rental yields.
Conclusion: Investing in Certainty
Poor design is an expensive, avoidable mistake. It drives away quality tenants, attracts aggressive enforcement from local authorities, and erodes the long-term value of your property. In the UK rental market, the “voice of calm” belongs to the landlord who has a well-designed, compliant, and professionally managed portfolio.
Stop seeing design as a cost and start seeing it as a hedge against vacancy and litigation. By professionalising your property’s aesthetic and functional standards, you secure a competitive advantage that no “cheap” alternative can match.
Take the Next Step Toward a High-Performance Portfolio
If your properties in Birmingham or Burton are underperforming, or if you are concerned that your current management is leaving you exposed to the risks of poor property standards, we can help. We provide clarity for landlords who want to move from uncertainty to professionalised success.
• WhatsApp: Message our team for an immediate chat about your property’s potential. • Email: Send us your portfolio details for a professional review and design audit. • Consultation: Book a free -minute “Clarity Call” via our online form. We will review
your current yields and provide a no-obligation roadmap for professionalising your assets.
This is your opportunity to gain certainty, not sales pressure. Let’s ensure your property is an asset, not a liability.
Disclaimer: This article provides general guidance only. Always seek independent legal, tax, or financial advice before making decisions affecting your property or business.
Frequently Asked Questions (FAQs)
Q: How much should I budget for a “design-led” refurbishment?
A: The budget can vary significantly based on the property’s size and current condition. However, a good rule of thumb is to invest between -% of the property’s value to achieve a high-quality, durable finish that will command premium rents. A strategic investment of £,, for example, can often add £, to the capital value and significantly increase monthly rental income.
Q: Is professional interior design worth the cost for a rental property?
A: Absolutely. Professional design is not about aesthetics alone; it is about return on investment (ROI). A professional understands how to create a layout that maximises space, chooses materials that withstand tenant wear and tear, and creates a cohesive “brand” for your property that attracts higher-quality tenants willing to pay more for a superior living experience.
Q: What are the most critical design elements for tenant retention?
A: Beyond a clean and modern aesthetic, the most critical elements are functional. These include dedicated and well-lit workspaces, ample and intelligent storage solutions, high speed internet infrastructure, and well-appointed kitchens and bathrooms. These features demonstrate to tenants that their comfort and lifestyle have been considered, fostering a sense of home and encouraging longer tenancies.
Q: How does the Renters (Reform) Bill make design more important?
A: The Bill, along with the Decent Homes Standard, codifies tenant rights to a safe and well-maintained property. Design is no longer just about marketing; it is about compliance. Issues like damp and mould, which are often caused by poor design (e.g., inadequate ventilation), can now lead to significant financial penalties for landlords. Good design is a proactive compliance strategy.
Q: Can I implement these design changes myself, or should I use a professional?
A: While some landlords are skilled DIYers, a professional management company with design expertise offers significant advantages. They have access to trade discounts on materials, a network of vetted contractors, and an understanding of what design trends are currently driving rental demand in your specific local market. This ensures the project is completed on time, on budget, and to a standard that guarantees maximum ROI. This article provides general guidance only. Always seek independent legal, tax, or financial advice before making decisions affecting your property or business. To explore how these changes apply to your portfolio and to develop a tailored strategy for success, get in touch with our team for a deeper assessment of your options. We offer a complimentary -minute clarity call to discuss your current situation and identify any immediate areas of exposure.
• WhatsApp: Message us for an informal discussion on 0121 2853705 • Email: Send your specific questions to info@StayAndCo.uk
• Online: Complete our
to secure your complimentary - minute call. About the Author Amanda Woodward is a UK property entrepreneur specialising in investment, development, management, and training. After buying her first London property in 2010, she achieved financial independence before 30 and built a business that celebrates 15 successful years in 2025. Her portfolio spans buy-to-lets, HMOs, serviced accommodation, and hotel developments across Staffordshire, Cheshire, Birmingham, London, and the South East. A highlight of her career was launching her first hotel in 2019. Beyond property, Amanda has educated thousands of aspiring investors, from small training sessions to major events such as the Rich Dad, Poor Dad seminars and the Women Achievers Congress alongside Kim Kiyosaki. She now co-hosts The Essential Property Podcast with Paul Samuda, sharing insights from over a decade in the industry.
Visit https://www.amandawoodward.co.uk/ to learn more about her work and latest projects.
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