Regulation puts self-managing landlords under pressure

Compliance and legislation are the biggest sources of stress for self-managing landlords, as many weigh up whether managing their own portfolios is still the right approach.

Research by property management company Rushbrook reveals 74% of self-managing landlords say the task of managing their rental portfolios has become harder over the last three years.

Self-managing landlords have to deal with the Renters’ Rights Act, selective licensing and Making Tax Digital, among other legislation.

Legislative landscape changing

According to the data, more than half of landlords (57%) say recent changes to rental market regulation have made them reconsider whether they want to continue managing their properties themselves.

While compliance causes the most stress, maintenance and repairs demand the most time, with 52% identifying this as the most time-consuming aspect of managing their portfolio.

More than 68% of self-managing landlords report spending 31 hours or more each month managing their rental properties, while a further 17% spend between 21 and 30 hours.

Managing director of Rushbrook, Roma Sharma, explains with the legislative landscape changing, many self-managing landlords are struggling to keep up.

She said: “Managing a rental portfolio has always required time and expertise, but the legislative landscape has become considerably more demanding and the Renters’ Rights Act has only increased the focus on getting things right.

“What’s interesting is that landlords aren’t simply telling us regulation is stressful; for many it’s making them reconsider whether self-management remains the right approach. When you’re juggling multiple properties, keeping on top of compliance alongside maintenance, tenants and the day-to-day running of a portfolio is a substantial undertaking.

“Professional management isn’t about landlords relinquishing control of their investments. It’s about having the expertise and infrastructure around them to ensure their portfolios continue to be managed properly as the demands placed on them evolve.”

Keeping on top of legislation

The data reveals that, when asked for the primary reason they would consider using a letting agent, keeping on top of legislation and compliance ranks first, cited by 26% of landlords.

Saving time ranks second at 21%, followed by reducing stress at 15%, dealing with tenants at 11%, and managing maintenance and repairs at 9%.