Posted on Thursday, May 8, 2025

Landlords: Is it time to go fully managed?

As a landlord in 2025 you may well be feeling a little overwhelmed. We don’t blame you. The private rented sector is undergoing one of its biggest transformations in more than 30 years with big changes for tenant rights and landlord responsibilities. It’s a lot to manage – especially if being a landlord is just one of the many roles that you juggle.

Much of the change is wrapped up in the Renters’ Rights Bill which is on its way to becoming legally binding. However, other regulatory changes, such as the introduction of Awaab’s Law and the Decent Homes Standard which deal with the resolution of hazards and providing a safe and comfortable environment for tenants respectively, also bring new obligations.

The challenge is the scale of these changes and the risk of damage caused to your business by non-compliance. It’s no surprise that many landlords are considering a fully managed service.

Ensuring compliance and avoiding penalties

Ensuring compliance and avoiding penalties will be the biggest motivators for landlords currently considering a managed service. Potential fines can range from civil penalties imposed by the local council of up to £7,000 for first or minor incidents of non-compliance up to £40,000 for serious or repeated non-compliance, as well as prosecution and unlimited fines.

Many managing agents will offer compliance audits to ensure your properties meet current legal standards and will offer further advice on how your obligations will change.

Finding tenants

The changes in the Renters’ Rights Bill will mean that it’s more likely that tenants will stay in-situ longer. It’s the primary reason for the changes as the government looks to encourage tenants to settle in a property and community through the replacement of shorthold assured tenancies with periodic tenancies.

While your tenant turnover may reduce, building tenant relationships will still be crucial and this is something that letting agents are expert in. That said the change to periodic tenancies also means that tenants can end their tenancy with a minimum of two months’ notice, so having an agent deal with unexpected tenant replacements on your behalf could be useful.

Passing on maintenance obligations

Repair and maintenance obligations can be a headache if, as a busy landlord, you have other things on your plate. Prompt resolution of minor issues is essential for good tenant relations while dealing with bigger issues swiftly will be a key obligation of the legislative changes. Passing on this responsibility to a letting agent means it’s their job to find a tradesperson. They will have established relationships, which could mean a greater likelihood of a job done quickly and well.

Managing rent and rent increases

The collection of rent and managing rent increases can be another task that landlords prefer someone else to do. The new legislation introduces additional restrictions on when and how rents can be raised. Increases will be limited to once a year with a two-month notice period and tenants will have the right to challenge rent hikes if they feel they are unfair. Rental bidding will also be prohibited so the setting of a realistic and fair rent at the start of the rental process is even more important.

Avoiding discrimination

Another key factor in the Renters’ Rights Bill will be the end of discrimination towards tenants with pets, children or who are on benefits. A managing agent will help draft unbiased listings and help you navigate the rejection of clients based only on financial or property-related factors to ensure compliance.

Keeping on top of licensing and sanctions changes

Licensing and sanctions changes are another two factors to beware of. Changes in licensing obligations mean more local councils are likely to introduce additional requirements this year. Meanwhile, sanction checks will now apply to both tenants and landlords from 14 May which may be another task to leave to a managing agent.

 

For more information on how Kings Group can assist you on your letting journey, please contact one of our branches in Essex, London or Hertfordshire today. We also offer a free and instant online valuation to give you an idea of how much your home could be worth on the current market.