The recent introduction of the Renters’ Rights Bill has resulted in a great deal of negative press. There is no doubt that the legislation will significantly impact landlords, and some may feel anxious about the impending changes. The Bill and factors introduced by it, including the Abolition of Section 21 evictions, are also likely to lead to many landlords selling up, and therefore portfolio revenue for property management agents facing real decline as a result.
I’d argue there has never been a better time for agents to focus on upskilling, to help educate their landlord clients and prevent the scenario of eroding income. Agents need to be confident in their understanding of the Bill, its implications and how – working together with their landlord clients – they can navigate the changes. Adopting such an approach will then undoubtedly present opportunities.
For example, the introduction of ensuring possession grounds are fair to both parties is – I believe – perfectly reasonable, because most landlords are fair. New processes will need to be implemented to help upskill staff and ensure their paperwork is relevant and effective. It will be vitally important to demonstrate that all processes have been followed to ensure the landlord can exercise their rights.
The price is right
The provision of stronger protections against backdoor evictions to help tenants appeal excessive above-market rents means that listers will need to understand how to price a property correctly. They need to offer the right rental figure to encourage viewings, preventing the scenario of highest bids. There is a risk properties will stay empty if they are priced too high.
Equally, good training in getting pricing right and not killing the local market will be key for listers – to ensure offers above the market rate are not accepted.
Meeting the Code of Practice
The introduction of a new Private Rented Sector Landlord Ombudsman has been designed to provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord. In this instance, agents, managers and business owners will have to upskill to ensure their processes meet this code of practice.
Getting behind the data
I am firmly behind the measure to create a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance. This is similar to licensing in which agents will potentially manage this on behalf of the landlord – so obtaining all the relevant safety certificates and processes, from the EPC to the electrical and gas safety certificates and legionella risk assessment etc.
Mastering sales skills
In some areas, for example, where tenants are provided strengthen rights to request a pet in the property, landlords will be required to obtain pet insurance to cover any damage at the property. Here, agents could refer leads to house insurance brokers.
Applying the Decent Homes Standard
The new standard requires training for all staff. Listers, who have targets to meet, must identify issues during market appraisals to guide landlords, property managers, and inventory clerks effectively. This measure will also help to weed out poor-quality property, which takes time to manage and can be unprofitable.
Effectively applying ‘Awaab’s Law’
The risks for fines and criminal prosecutions are real and this will require good quality process training to ensure all staff understand the legal expectations.
Acting fairly
The new Bill will help ensure everyone is treated fairly when it comes to looking for a place to live. Areas such as training in the Equality Act and how to deal with difficult landlords will be vitally important.
At the end of the day, agents need to appreciate and effectively guide their landlord clients that the risk of errors has suddenly and massively grown. Now more than ever landlords will be looking to agents for support due to the complexity of compliance.
The cost of training will represent real value when compared to the risks and the fines that landlords could potentially incur. Now is the time for agents to add value and support landlords through this time of transition by showcasing their knowledge and expertise.
