With over 150 articles of legislation applying to landlords letting their property, it is no surprise that 63% of the 300 landlords surveyed by Goodlord (an industry leader in tenant referencing) said they currently use a letting agent. Just under a third (29%) of landlords cited compliance as the main advantage of using a letting agent, up from 17% in their 2023 survey.

Most landlords are currently concerned about the 2 main elements of the Renters’ Rights Bill: axing section 21 and abolishing fixed term tenancies so all contracts are mandatory periodic. We have already published 2 articles on the proposed bill and our opinion as an agent on the impact it will have:

Over a third (35.6%) of landlords were however feeling positive about new grounds for eviction (landlord or their family need to move back or selling the property), a new ombudsman service, a new landlord register, and the application of the Decent Homes Standard to the PRS.

The most unpopular reforms amongst landlords are those that restrict their discretion or make impositions on them, such as the ‘right to have a pet’, banning ‘discrimination’ (whereby you can no longer advertise tenants on benefits or children will not be considered), and raising the minimum EPC standard to band C.

It has been muted the request for a pet must be 'reasonable' and the tenant would need additional insurance. We agree that all applicants should be given a fair opportunity to apply for a property but overall the landlord should have the final decision so if a tenant not on benefits or with children is in a better position to meet the affordability for referencing (which the landlord has to pay for now under the 2019 Tenant Fees Act) and more likely to pass the landlord can choose them without feeling they breach any "discrimination" laws. We have many landlords who have accepted tenants in receipt of benefits provided they have a guarantor to support the application if affordability is not met and they go on to make great tenants. Likewise, people with children can make great tenants as they are looking for a long term family home close to their school and work. The exact details of the matters are still in consultation phase along with the rest of the Bill. Please ensure you are registered for our monthly newsletter to ensure you receive the regular updates.

We have been saying for some time that the legislation our government keeps introducing is ultimately impacting supply and demand then resulting an increase in rents. A survey of over 700 landlords, carried out on behalf of Paragon by Pegasus Insight revealed that, on average, 87% reported making a profit in Q3 of 2024 which is the highest since Q1 2022. The government needs to recognise the important role landlords play in housing 20% of the population and do more to encourage them into the sector, rather than deter them as a result of ill thought out decisions. They claim they want to create a fairer playing field for tenants and landlords but at present, their actions are causing higher rents for tenants which means property investment remains an excellent choice for landlords.

We will take a quick look at some of the key reasons people already choose an agent and how the changes in 2025 mean more are now going down that path.

Long-standing industry legislation around safety compliance, deposit handling, property standards, record keeping and the importance of correctly issued documentation in the event of a court hearing possession are all key reasons landlords choose an agent to represent them. Don't forget, the agent is also taking on the liability. Not all agents are the same and our role is not just about the management of the tenancies as independent events. Our job is to represent or landlords best interests at all times but fundamentally, manage the asset. This enables short term profitability alongside long-term capital growth of the investment. Compliance may remain the backbone, but the proposed Renters Rights Bill is propelling this further for a number of reasons. November is expected to bring the Bill to the Report Stage, a key step closer to becoming law, potentially by summer 2025.

It will be more important than ever to generate maximum interest in your property to give you the greatest number of tenant offers as possible. Our staff will be vetting tenants from the outset to assess their suitability along with pre-viewing qualification questions and a pre-reference check to determine affordability prior to verification from employers. This enables us to give our landlords all the relevant information they need to help make a decision on which tenant they wish to proceed with. This will be even more critical as in theory, it is likely to become more difficult to regain possession of your property if you are the one choosing to end the tenancy.

With no fixed term to act as a natural reminder to review rents you don't want to miss an opportunity to check you are receiving a fair market rent or find you are going through the process of tribunals if a tenant challenges anything which is deemed unreasonable. An agent will help you keep on top of what is happening in the local market and help ensure your property is maintained to the highest standards so that it is warranted.

Every landlord wants their rent paid in full and on time. Most of the time this is the case but tenants can slip into bad habits, have a change of personal or job circumstances, health issues, relationship change or other unforeseeable events. Best case, the agent will work with the tenant to quickly get on top of any arrears and continue the tenancy as intended. Worst case, the landlord needs to serve notice for possession of the property via the courts and attempt to recover the lost monies. This is difficult to do without agent support and expertise as a judge will always want to favour a tenant and not make anyone homeless. E.g. some landlords are unaware there are penalties if you get to court and they find the tenant has been chased for rent at too regular or persistent intervals and it can go against them. All documentation needs to be issued correctly to guarantee a more straightforward possession hearing and that requires specialist knowledge.

It is also for this reason that many landlords opt for a Rent Guarantee and Legal Expenses cover. The most comprehensive levels of cover are often only available on receipt of an acceptable reference from a third party and in situations where an agent manages the collection of the rent. This cover proves invaluable in the event of rent arrears and the need to go via court for possession, which can take up to 9 months. Most landlords are not in a position to cover the mortgage for that long or the legal and bailiff costs. Renters Rights Bill will also increase the permitted arrears before a notice can be served for possession from 2 months to 3 months.