If you are a letting agent who has begun to question your worth, stop. The value of property management is rising every time the Government introduces a new hoop to jump through, and no one will be feeling the pressure more than landlords.
Self managing in a compliant fashion will become virtually impossible for all those bar full time property investors who have perhaps worked in the lettings industry. For Average Joe who is trying to top up his pension or for the accidental landlord, keeping on top of and implementing regulations will become virtually impossible.
Rental supply and tenant demand up
Despite an unnerving feeling that the Government is trying to rid the private rental sector of small-time landlords, there is still a robust future in buy-to-let. In fact, the latest figures from ARLA Propertymark found that rental supply rose to 203 properties per member branch in March from 197 in February 2019 – a figure also up 13% on a year ago.
Its report also revealed demand from prospective tenants increased from 65 to 67 between February and March this year, which has partly been blamed on the stuttering and stalling sales market. This sentiment is backed up by a recent feature in Property Week, which reported on a ‘bullish’ private rental sector that will benefit from uncertainty and any ‘Brexit-induced slowdown’.
Landlords need help with property management
Now is the time for property management to rebrand. It needs to become a specialism rather than a mere service. Of course, all the cornerstones of property management remain pertinent – the handling of maintenance, property visits, rent collection and tenancy administration – but compliance is now an equally as important (perhaps even more so) point when speaking to property investors.
Look what self managing landlords are up against: confusion over Right to Rent checks; the Homes (Fitness for Human Habitation) Act 2018 and its threat of tenants being able to sue; a likely ban on ‘no DSS’ in adverts; the obligation to have a minimum EPC rating of E or above by 1st April 2020; the scrapping of Section 21 notices and reform of Section 8s; mandatory use of deposit protection schemes and the banning of tenant fees. These are all relatively new rules with reams of red tape – and all introduced against a backdrop of existing compliance surrounding gas, electricity, fire and water safety.
Surely compiling a checklist of every landlord’s legal obligation – with the penalties highlighted besides – is all that’s needed to convince landlords they need a full property management service? The value would be plain to see and fees would be tangibly justified, without much explanation.
If the checklist of rules, regulations and compliance looks as scary to you as much as it does to landlords, choose ARPM. We will legally and compliantly manage every one of your rental properties under our partnership service – white-labelled, if you wish. We’re already following every Government announcement and swiftly implementing every new regulation on behalf of letting agents across the country. Why not join them and gain peace-of-mind for your landlords, and reassurance for yourself that you’re worth it?
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