More than half of self-managing portfolio landlords are reconsidering whether to manage their properties themselves as regulation increases the demands of running rental portfolios.
Some 57% say recent changes to rental market regulation have made them reconsider self-management, according to research from property management specialist Rushbrook.
Almost three-quarters – 74% – believe managing their portfolios has become harder over the past three years.
Compliance and legislation now represent the biggest source of stress for 41%, ahead of maintenance and repairs at 20%, managing changes between tenancies at 11% and tenant communication at 10%.
MANAGEMENT PRESSURE
The survey focuses on landlords managing their own portfolios, with 62% owning at least six rental properties and 36% owning 11 or more.
While compliance creates the greatest stress, maintenance and repairs consume the most time, cited by 52% of landlords.
More than two-thirds – 68% – report spending at least 31 hours a month managing their properties, while another 17% spend between 21 and 30 hours.
The workload is affecting how quickly some jobs are tackled, with 77% saying they regularly postpone non-urgent maintenance because they do not have enough time to arrange it.
PROFESSIONAL MANAGEMENT
The changing regulatory environment could create opportunities for letting agents and professional property managers.
When asked why they would consider professional management, 26% identify keeping on top of legislation and compliance as the main reason, followed by saving time at 21% and reducing stress at 15%.
Roma Sharma (main picture, inset), Managing Director of Rushbrook, says: “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.”
Sharma adds: “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.”
