Big is definitely better when it comes to the letting and management of rental property, according to CPBigwood.

Louise Kean, associate partner residential lettings, said size mattered because ultimately landlords get a better deal.

“We have specialist staff in most areas of lettings which means we have the capacity to manage a large volume of propertiesan tenancies that brings us the revenue we need to achieve our business goals. This, in turn, allows us to offer competitive packages for new landlords.”

Her comments came as consolidation continues in the rental sector as smaller operators find trading tough.

Ms Kean said economies of scale mattered because it allowed increased specialisation of roles.

For example, functions such as valuation of the property concerned, a negotiator arranging the viewing, preparation of an inventory, contracts and the checking of references, property management, repairs and maintenance, accounts, and renewals.

“All these separate roles can come into play in just one transaction,” said Ms Kean.

“If you have specialists handling each then they tend to get really good at what they do, creating efficiencies and saving the firm time and money. Basically that is what happens with the bigger operators like ourselves.

“With small scale firms one person can be landed with all the tasks. I would submit that however much ability you have as an all rounder you will never be good at everything. The small player does not have the level of expertise and will struggle to keep costs down. And ultimately that affects the bottom line.”

She went on: “The result is that to try and stay competitive the small firm looks to cut a cheap deal with landlords, but then find they cannot deliver at the level required and cannot make an acceptable return.

“The big firm, with its specialists, can offer levels of service standards beyond the reach of smaller enterprises while at the same time keeping prices low. So long as the big firm can stay nimble on their feet, keeping a lid on bureaucracy, they will win out most of the time.”