Property management is increasingly being viewed as a specialist discipline in its own right as letting agents grapple with growing regulatory demands and mounting compliance responsibilities.
Research from property management specialist Rushbrook & Rathbone found that 81% of letting agents believe the regulatory burden involved in managing rental properties has increased in recent years, with 44% saying it has increased significantly.
Compliance and legislation were identified as the biggest contributors to the additional workload, ahead of administration and paperwork and the growing complexity of possession processes.
The survey also highlights the recruitment challenges facing the sector. More than half (56%) of respondents said property managers have become the hardest role to recruit, compared with lettings negotiators (22%), business development managers (14%) and compliance specialists (10%).
DIFFERENT SKILL SETS
More than three quarters (77%) of agents believe winning new landlord instructions and managing rental properties now require fundamentally different skill sets, reflecting the increasing complexity of the sector.
Despite these pressures, almost two thirds (63%) of agencies continue to manage property portfolios entirely in-house, with a further 19% relying predominantly on internal teams.
Operationally, winning new business remains the biggest challenge for agents (22%), followed closely by property management (19%) and compliance (16%).
Roma Sharma (main picture, inset), Managing Director of Rushbrook & Rathbone, says: “The findings reflect what we’ve been seeing across the industry for some time. Property management has evolved into a highly specialised discipline that demands a very different skill set to winning instructions or growing a lettings business.
“Twenty years ago, property management was often viewed as an administrative function focused on rent collection and organising repairs. Today, it encompasses compliance, health and safety, contractor management, maintenance coordination, tenant communication, financial administration and an ever-growing body of legislation.”
INCREASSING EXPECTATIONS
She adds: “None of that diminishes the importance of winning new business, but the reality is that asking the same people within a business to excel at both disciplines is becoming increasingly challenging.
“This isn’t about suggesting that every letting agent should outsource their property management.
“Many agencies deliver an excellent in-house service. However, every business should regularly assess whether it has the capacity, expertise and systems required to meet the increasing expectations placed upon property managers.
“For some agencies, partnering with a specialist management company can be a highly effective way of strengthening their overall proposition.
“It allows negotiators and valuers to focus on growing the business, whilst ensuring landlords continue to benefit from experienced property managers whose sole focus is protecting their investment, maintaining compliance and delivering an excellent tenant experience.”
