Why the cost of self-management has risen post-RRA

From the price of penalties to potential damage to landlord reputations, the total costs of self-management have escalated now that the Renters’ Rights Act has gone live and compliance responsibilities have changed.

For some landlords it will mean reconsidering whether they want to manage their property themselves or pass on the responsibility to a letting agent to manage it on their behalf.

Compliance is one of the biggest issues under the new act. That includes the cost of ensuring properties and processes are compliant – as well as the risk of penalties if they aren’t.

The cost of non-compliance penalties

One of the most pressing non-compliance deadlines has now passed. Landlords had until May 31 to provide their tenants with a copy of the Renters’ Rights Act Information Sheet 2026 or to provide written terms if they previously had a verbal agreement.

If they haven’t yet done so, they could face a fine of up to £7,000. Where an agent manages a property, it was their responsibility to provide the sheet, regardless of whether the landlord had already provided it.

The non-serving of the information sheet is regarded as a breach, but other instances of non-compliance with the RRA are deemed offences and could cost up to £40,000.

The price of eviction

The end of no-fault evictions marks one of the biggest changes within the Act and potentially added legal costs as court processes are followed. Eviction costs are expected to be around £3,000, which includes an element of lost rent, but with the changes so new, there is also uncertainty over how the new eviction process will work in practice and whether the court system will stand up to the added strain, which could mean even further pressure on costs.

The added cost of unpaid rent

Rent collection is also at risk under the RRA since the mandatory threshold for eviction for rent arrears has increased from two months to three and the notice period from two weeks to four. That could result in landlords going without payment for longer, even before the eviction process begins.

Trickier rent setting

Rent setting is also more challenging post-RRA, since it must be to market rate and at the price initially advertised. This can be difficult for individual landlords who might not have the whole market knowledge of a local agent. Tenants can also challenge rent increases at a first-tier tribunal with it no longer possible for the final decision to be higher than the landlord originally proposed.

The need for maintenance to reduce costs

The RRA has been specifically designed to encourage tenants to stay longer, but that could mean that landlords let inspection and maintenance schedules slip. Such complacency could cost in a number of ways.

Tenants may decide to move elsewhere with little warning if they aren’t happy with how a property is being managed. It could also mean that potential problems aren’t identified before they become more costly fixes. Maintenance and inspection schedules are a key element of a managed service and help provide access to a wider network of trusted and reliable contractors – especially useful in emergency situations when it’s even more important to keep tenants happy.

It’s this that marks perhaps the most significant potential cost – that of damage to a landlord’s reputation. In the post-RRA world, that is now more important than ever.

Cowell Norford buy, sell and let properties in Rochdale, Oldham and Bury, offering exceptional levels of service and knowledge that result in better outcomes for our clients. Contact us to find out more.

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