Here is Director, Adam Powell’s, take on why being a self-managing landlord may be leaving you more exposed than you think.
I speak to self-managing landlords almost every day; they make up a significant percentage of the private rented sector. Landlords are not simply trying to avoid a fee, they take an active interest in the marketplace, and through years of tenancy management have a concept of the ‘dos and don’ts’. And after all, who can manage your property better than yourself?
Yes, there are benefits of self-managing – you know your long-term strategies with the investment, you can react quickly to problems, and you can engage with a tenant in a more close-knit way than an agent can. Agents aren’t proactive, they’re reactive – aren’t they?
The issue with residential management, and the legislation that comes with it, is that by the time you realise you have done something incorrectly (usually innocently), it is too late. Those unlucky enough to attend a court hearing to recover possession will often find cases thrown out for the smallest administrative errors.
Can you evidence that service of the How to Rent Guide from 5yrs ago? What about the gas check in 2022, where the plumber couldn’t gain access because the tenant was on holiday? How good are your notes? Do you have a CRM system capable of quickly producing those IP address tracked e-documents when the tenant can’t recall receiving them?
There is extreme pressure on the housing system, and the courts – rightly or wrongly – are instructed to only award a possession order if they have no other choice. The state simply can’t deal with another priority homelessness case. So, expect the duty solicitor (provided free of charge) to be extremely knowledgeable in the area, and the judge to see you as the ‘professional that should know better’. If your ducks weren’t in a row at tenancy commencement, it’s too late to align them now – the damage is already done.
And then there’s 1st May 2026….
We are about to see the biggest change to the sector in at least two generations. Our offices are busy with staff undergoing almost daily industry training. There’s a near-overwhelming change in how every process is undertaken across viewings, marketing, legal documents, rent reviews and statutory notices. If we are working around the clock to get up to speed in time for the new regime then I’d argue that it is almost impossible for an individual who doesn’t have the access to the resources that we do to undertake the same.
The sting in the tail is that these changes are being implemented along with a change in how enforcement is undertaken. Simple minor non-compliance breaches attract a £7,000 fine (per breach), and major breaches such as failing to register on the landlord register can bring a £40,000 fine per offence. If you own a portfolio and have a small gap in your processes, you could find yourself paying the fine against each tenancy.
Will I get caught?
The new legislation has moved to place power with local authorities, and the incentive is there to enforce. Instead of fines going back to the Treasury, councils will now get to keep the funds and bolster their budgets. We are already seeing some councils vigorously policing, seeing the opportunity as a revenue stream.
So, what’s my advice?
Estate agents and managing agents are a profession handling what is likely to be one of your most expensive assets on the balance sheet, and a key tool for your retirement or future wealth. Treat it as such. You wouldn’t look for the cheapest accountant, bank or solicitor. A good managing agent should offer more than just a rent collection service. They should be guiding you on economic trends, advising on investment strategy – tailored to you, and ensuring that when a problem does occur, you are equipped to handle the issue effectively and without worry. Remember – it’s too late to ‘fire fight’ at that point, you either have those ducks in a row, or not.
WS Residential prides itself on being more than just a highly regarded managing agent. We’re an investor partner, guiding you through the most turbulent time in the sector, and building your portfolio for the future. Our wider branch services mean we can assist with purchase and sale, formal surveys, portfolio book purchases, and still retain that personal contact.
If you’re a let-only landlord caught in the headlights, we’re here to talk it through and show you how we can help.
Challenge us to provide a free portfolio ‘health check’ on any property you self-manage, or have under management outside of WS, and we’ll offer our honest opinion on any points of exposure, what we’d do differently, and where there is growth in your investment. Email Adam Powell at Adam.Powell@walkersingleton.co.uk or call 01484 711200.
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