Landlords say managing rentals has become harder
Three-quarters of portfolio landlords say managing rentals has become harder
The latest research from residential property management specialist, Rushbrook, has found that almost three-quarters of portfolio landlords say managing their rental portfolio has become harder in recent years, with the changing legislative landscape now prompting many to reconsider whether they need professional help with respect to management of their portfolio.
Rushbrook commissioned a survey of landlords who manage their own portfolios to understand the demands associated with property management, the areas creating the greatest pressure and whether recent and upcoming changes to rental market regulation are changing attitudes towards professional property management.
Of those surveyed, 62% own six or more rental properties, including 36% with portfolios of 11 or more.
Legislative changes prompting landlords to reconsider self-management
The research suggests that the increasingly complex regulatory landscape, driven largely by the implementation of the Renters’ Rights Act, is starting to influence how landlords approach the management of their portfolios.
74% of those surveyed by Rushbrook believe that, over the last three years, the task of self-managing their rental portfolios has become harder.
What’s more, 57% of self-managing landlords say recent changes to rental market regulation have made them reconsider whether they want to continue managing their properties themselves.
No surprise then, that in the current market, compliance and legislation is the single biggest source of stress for self-managing landlords, cited by 41%. This ranks ahead of maintenance and repairs (20%), managing changes between tenancies (11%) and tenant communication (10%).
Maintenance placing further pressure on portfolio landlords
While compliance causes the greatest stress, it’s maintenance and repairs that place the greatest demand on landlords’ time, with 52% identifying this as the most time-consuming aspect of managing their portfolio.
In fact, 68% of self-managing landlords report spending 31 hours or more each month managing their rental properties, while a further 17% spend between 21 and 30 hours.
The pressure this creates is also having a practical impact, with 77% saying they regularly delay dealing with non-urgent maintenance issues because they don’t have the time to arrange them.
Compliance driving consideration of professional management
When asked for the primary reason they would consider using professional property management, keeping on top of legislation and compliance ranks first, cited by 26% of landlords, further highlighting the change currently being seen across the sector as a result of the Renters’ Rights Act.
Saving time ranks second at 21%, followed by reducing stress at 15%, dealing with tenants at 11% and managing maintenance and repairs at 9%.
Managing Director of Rushbrook, Roma Sharma, commented:
“Managing a rental portfolio has always required time and expertise, but the legislative landscape has become considerably more demanding and the Renters’ Rights Act has only increased the focus on getting things right.
What’s interesting is that landlords aren’t simply telling us regulation is stressful; for many it’s making them reconsider whether self-management remains the right approach. When you’re juggling multiple properties, keeping on top of compliance alongside maintenance, tenants and the day-to-day running of a portfolio is a substantial undertaking.
Professional management isn’t about landlords relinquishing control of their investments. It’s about having the expertise and infrastructure around them to ensure their portfolios continue to be managed properly as the demands placed on them evolve.”
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