The private rented sector has seen significant changes this year, including the introduction of the Renters’ Rights Act (RRA) and the rollout of Making Tax Digital (MTD). Amidst these developments, letting agents are clarifying their role and value to landlords.
Sophie Danes, group director of property management at Lomond, noted that while some landlords believe self-management is cheaper, the biggest costs often stem from arrears, void periods, and compliance failures, rather than management fees. She suggested that self-management is only more economical when no problems occur.
Another misconception addressed is that finding tenants is the most challenging aspect of property management. Danes explained that successful tenant selection involves more than just reference checks, requiring dedicated time and knowledge. Additionally, correctly handling tenant deposits demands expertise to avoid issues.
Letting agents also provide expertise in the hundreds of pieces of legislation governing property letting and management, offering tailored advice that online sources may not. Professional agents are also highlighted for their ability to manage risk, mitigate issues, and proactively maintain properties, which can prevent expensive repairs by addressing problems earlier.