Strong rental values and increasing demand for rental properties means that now is the time to revise estate management strategies and upgrade let properties.

The shortage of national housing stock, the continued lack of competitive lending and the perceived uncertainty associated with homeownership means many have decided to rent until market stability returns, says land agency firm Strutt & Parker.

Mark Herrod, a surveyor in Strutt & Parker's Harrogate office, said: "The most recent RICS Residential Lettings Survey suggested that rental values are expected to increase slightly through 2012, indicating that demand for rental properties remains high.

"But what does this mean for rural communities and estates? There is no doubt that there is more competition between prospective tenants for properties in more desirable locations - and it is not just for the sought-after small and easily managed properties. When substantial properties become available, prospective tenants are willing to pay more than their predecessors in order to secure a tenancy.

"In short, the situation means a potential rise in income from well-managed residential portfolios in good locations and now is a good time to reinvest that money on repairs and upgrades that have been on the 'to do' list for too long."

Herrod added: "The relative prosperity of most asset classes is generally cyclical and we can be relatively certain that once the economy reaches a more even footing, the problems in Europe are resolved and the rural UK property market stabilises, the rental market is likely to take something of a hit. At that point tenants will become more selective and resistant to rent reviews. If their homes are not up to scratch it is entirely possible that even long-term tenants will search for better quality accommodation. Now is the time to reinvest and ensure tenants are retained in the long term.

"Consider updating external painting schedules and arrange a programme of window repairs and good quality double-glazed replacements for those draughty rotten sashes. There are grants available for retro-fit insulation schemes and the cost of some elements of new central heating systems still benefit from a lower rate of VAT. For properties which are subject to certain secure tenancies which oblige the tenant to contribute a proportion of the cost of certain works, investment now can make projects more affordable for both landlord and tenant in such cases.

Herrod said: "Strutt & Parker has been able to draw up comprehensive new strategies for estates and one-off landlords to ensure that the capital and rental values of properties are preserved and in some cases increased. This not only benefits estate owners in the long term but also improves the comfort of tenants and thus helps to build mutually beneficial long-term relationships between landlords and tenants."

For help and advice on estate strategies, contact Strutt & Parker's Harrogate office on 01423 706786.