Based on a survey completed by over 1,000 landlords and 68 in-depth interviews with landlords, letting agents and experts in the UK, the report highlights landlords’ behaviour is fundamental to developing effective regulatory intervention in letting their properties. These include making sure the property is in a good state of repair, selecting tenants and complying with relevant laws and regulations.
Choosing the right letting agent
The role of the letting agent was a key theme, with a number of landlords citing they had misconceptions on the subject of ultimate liability in relation to property standards, with 50% ultimately saying the letting agent is responsible or that responsibility is shared, whilst 17% did not think or did not know if landlords should still treat compliance as important when using a letting agent.
Surveyed landlords indicated that letting agents have a significant influence over key decisions including setting rent and selecting tenants, and, to a lesser extent, extending a tenancy agreement and repairs and maintenance. However, most said letting agents had no influence on decisions relating to upgrades or improving energy efficiency, which ultimately is a decision of the property owner.
The main reasons for deciding not to use letting agents were related to the landlords’ preferences for a direct relationship with tenants and their own ability to handle the property management role.
However, dissatisfaction with the services provided can be a deterrent. The findings suggest that landlords’ experiences of letting agents can vary greatly, with many reporting problems and issues with their services. This is particularly the case in England and Northern Ireland where, compared to Wales and Scotland, the letting agent sector remains largely unregulated.
Feedback also showed conflicting views about the quality of services of larger letting agencies in comparison to those of smaller independent franchises. Some landlords’ larger companies offered a better standard of service, whilst others felt smaller agencies performed better and were favoured by tenants.
This demonstrates a gap in the knowledge about the role of letting agents. However, Propertymark encourage landlords to do their research and look for a Propertymark regulated agent to ensure they are receiving the upmost professional service, as we only advocate for the highest standards within the sector.
With the private rented sector hit relentlessly over the past decade with legislation, it is no surprise that landlords are finding it difficult to keep on top of their requirements.
Propertymark will continue to work with the CaCHE to better understand the behaviour of landlords in the PRS, and in turn what they expect and need to see from the service agents.
