Many agents who plan to pass the cost of Renters’ Rights Act compliance through to landlords via higher fees risk pushing them to risk self-manage, switch agent or exit the sector altogether, according to Goodlord.

It says landlords have no cushion of goodwill to absorb higher fees as only 6% are currently very satisfied with the value for money they get.

Goodlord’s Is Renting Broken? report draws on input from 2,650 agents, tenants, and landlords and reveals that while 68% of landlords use full property management, 59% cite high fees and poor value as their biggest frustration.

It found that agents perceive themselves as more prepared and better communicators than their clients experience them to be. Meanwhile, landlords are retreating from the market at the moment they need agents the most, and tenants are systematically underserved, under-informed and increasingly distrustful.

Admin

Reducing admin and manual processes is a must for unlocking the capacity needed to meet demand and improve service where it matters most, says Goodlord, which points to the fact that while agents are working harder than ever, they are constrained by operational pressure.

It highlights clunky property management systems, communication tasks that aren’t automated and disproportionately labour-intensive end of tenancy tasks.

However, technology isn’t removing this fast enough for agents - in many cases it is adding to it as only 46% say their legacy IT systems reduce workload while 27% say current technology activity adds complexity.

Value

Agencies that can show their value before they ask landlords to pay more for it will keep their book, according to managing director of insurance, Oli Sherlock. “The issue isn’t that agents aren’t delivering, it’s that the value of that delivery isn’t always being seen. In a more complex, regulated market landlords need agents more than ever to navigate that complexity, but when that value isn’t visible that’s when trust starts to break down.”

The report adds: “Those that embed compliance into their operations, communicate clearly to landlords and tenants and position themselves as trusted advisors will be better placed to retain landlords and build confidence across the market.”

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