Should landlords self-manage or use an agent for the Renters’ Rights Bill?

The impending Renters’ Rights Bill looks like it will have a huge impact on the PRS and it leaves, one industry expert says, landlords grappling with a choice.

Should they manage rented properties themselves or recruit professional agents to navigate the complexities?

With the legislation expected to become law later this year, it promises sweeping changes that could reshape the responsibilities of landlords.

Allison Thompson, the national lettings managing director at Romans, says issues for landlords under the Bill include the abolition of Section 21 ‘no-fault’ eviction.

Other changes coming

Ms Thompson says that replacing ASTs with periodic agreements, and Section 21 with Section 8 for eviction, will see stricter requirements and longer notice periods.

Also, landlords will have rent increase limits, a new Decent Homes Standard, and tougher penalties for non-compliance.

Landlords will need to register with a new ombudsman and a private rented sector portal, alongside adapting to updated discrimination laws and pet policies.

She says: “There will also be other, less well-publicised changes. So, even if you’re confident that you can manage things yourself, with many new laws likely to be enacted this year, it might be worth using a qualified Propertymark or RICS member agent when you need to re-let or issue a new contract to an existing tenant, to ensure everything is set up correctly.

“To let and manage a property legally and have a successful tenancy takes a great deal of time, effort and knowledge.”

Understand more than 400 laws

Landlords know that managing a rental property has always been demanding, requiring knowledge of more than 400 regulations, from national laws to local licensing schemes.

Landlords must vet tenants thoroughly, handle maintenance and safety checks, monitor rent payments and address emergencies promptly.

Failure to comply, even unintentionally, can lead to hefty fines.

Ms Thompson said: “A good letting and managing agent will have efficient systems and processes in place and can take much of the responsibility for legal compliance.

“Of course, there is a cost to this, but when you consider the time, you would need to spend learning the rules and doing everything yourself – not to mention the risk of falling foul of the law, which could result in significant penalties, even for unintentional breaches – paying an agent usually represents very good value.”

She adds: “It’s not just about collecting rent; it’s about mastering a maze of legal obligations.

“One misstep could cost thousands.”