Why landlords should consider a letting agent’s managed service

We know that while a rewarding business, being a landlord can also be stressful. With the first phase of implementation of the Renters’ Rights Act having come into force on May 1, stress levels may have risen further. Landlord responsibilities have expanded, while tenant rights have strengthened. Penalties for non-compliance have also increased.

With all the changes, you might be considering passing management over to a letting agent to reduce your cortisol levels. If you are undecided, then here are a few ways agents may be able to help.

Compliance with the Renters’ Rights Act and other legal responsibilities

Greater enforcement powers by councils and local authorities, alongside increased penalties of up to £7,000 for breaches and up to £40,000 for offences related to the Renters’ Rights Act, mean that you can’t afford to make mistakes with compliance.

But the changes and new responsibilities can be complicated to both understand and enforce. Agents are managing the implications of the new act for multiple landlords and know the new rules inside out, helping you to meet new compliance obligations with greater ease and confidence.

Other legal obligations are also changing. There are further phases of the Renters’ Rights Act to come and new obligations around EPCs introduced in January mean that private rented properties must be upgraded to a minimum EPC C rating within four years. Landlords who are planning ahead can start the investment in upgrading properties now – spreading their £10,000 investment cap over the period to the October 2030 compliance date. Agents can help advise on the changes needed.

Ensuring regular maintenance and inspection schedules

With the end of no-fault evictions and the move to periodic tenancies, tenants need to give only two months’ notice. The end of fixed terms will result in less visibility over when tenants might leave.

Tenants will expect – and have the right to – higher quality rental properties under the new act. Ensuring that inspection and maintenance schedules are still in place will help keep properties to standard and keep tenants happy. Agents can manage this process on your behalf and also tend to have a wider pool of contractors on which to call than individual landlords. This is particularly helpful for emergency repairs.

Tenant screening and sourcing

The lack of visibility over tenants’ plans, as well as the greater challenges of evicting a tenant without a valid, legal and evidenced cause, increases the importance of choosing the right tenant in the first place. Agents have access to more sophisticated screening tools and have a ready pool of tenants on their books if yours do decide to give notice. With new rules also in place around rental price setting and rental arrears, they can also manage the process of rent collection for you.

Providing evidence

The new act places a greater emphasis on following process and backing it up with evidence. This applies to everything from possession grounds to rent setting. If the correct process isn’t followed, landlords can put themselves at risk. Even something as simple as serving tenants with their government information sheet, which outlines the changes in the act and must be served by May 31 latest, requires strict rules are followed to ensure validity.

Offering a great service

An agent’s managed offer not only helps to ensure compliance, but can also improve the service on offer, especially for smaller landlords who might have additional work or commitments to handle. In this new world of the PRS, offering tenants a great service and experience is more important than ever.