Many landlords have reviewed how they manage their properties in the wake of the Renters’ Rights Act, phase one of which come into effect on May 1. For some, this has prompted a shift to agents managing properties on their behalf.
A managed service goes beyond just compliance – it can reduce the risk of penalties, improve tenant relationships and ensure a happy tenancy for both landlord and tenant.
Compliance with changing regulation
The changes in the Renters’ Rights Act are the most significant for landlords, with new regulations covering rent increases, property reclamation and rental discrimination, to comply with. Understanding your new responsibilities can be daunting and the prospect of leaving it to an expert in their field might be far more appealing.
Crucially, phase one is just the start. Additional stages of implementation will introduce further responsibilities, such as the need to register on the government’s private rented sector database or else risk fines and invalidate possession grounds.
It’s not just the Renters’ Rights Act changing regulation responsibilities. New EPC rules introduced in January require upgrading private rented properties to a minimum EPC C rating by 1 October 2030. Landlords have a £10,000 investment cap to help manage the changes, so it’s important to keep track of spending.
Avoiding penalties
Stricter compliance brings with it tougher penalties. For non-compliance with EPC changes after 2030, for example, landlords could face fines of up to £30,000 – more than six times the previous £5,000 maximum.
Non-compliance with the Renters’ Rights Act includes civil penalties of up to £7,000 for breaches and up to £40,000 for offences. Prosecution is also possible. Agents will help to ensure that all compliance obligations are met, reducing the risk of penalties and prosecution.
More efficient screening and tenant sourcing
With the end of no-fault evictions and the automatic conversion to periodic tenancies, landlords will have less visibility over when a tenant may be considering leaving a property, as well as less power to evict them. Tenants need only give two months’ notice if they intend to move on.
The changes mean that picking the right tenant in the first place will be essential. Thorough tenant screening will help identify those who may fail on character or affordability grounds, as well as those who might be planning to commit fraud. Agents are likely to have invested in more sophisticated referencing software solutions that help to identify risky tenants, making detection far easier than for individual landlords.
Keeping on top of paperwork
With the increased compliance responsibilities comes a need for better record-keeping. To be valid, everything from possession grounds to rent increases requires evidence and the correct process to be valid. An agent can ensure everything is properly documented, legally compliant and that evidence is stored safely.
Managing maintenance
Maintenance is also an important part of the new responsibilities that landlords face, particularly once the Decent Homes Standard comes into effect in the PRS. Agents can manage regular inspection and maintenance schedules but are also likely to have a wider and more established network of trusted contractors than individual landlords. This will be particularly valuable for repair emergencies, helping to keep tenants happy even if the worst happens.
Handling tenant communications and building relationships
The importance of tenant relationships has also increased. Efficient and professional tenant communication is at the heart of agents’ managed service offers. It can also help to reduce the stress and potential conflicts that can arise from tenant disputes. And a happy tenant should mean a happy landlord.
For more information on how we can assist you on your lettings 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
