Do you have a plan of action for the year ahead?

With no ease up on the cost of living crisis, understandably many agents’ primary concern is whether or not their tenants can afford to pay the rent and heat their homes. However, as some landlords consider selling up and the ONS report an increase of 19% in the number of property businesses over the last 5 years, agents need to be proactive in attracting new business and retaining their existing clients.

So what can agents do?

Look after your landlords and tenants

Provide excellent customer service by responding promptly to queries, keep your landlords informed of any developments related to their properties, and address any concerns they may have.

Keep the lines of communication open with your tenants so that you will be on the front foot should there be any issues. Familiarise yourself with the help and financial support available for tenants  e.g www.gov.uk/cost-of-living.

For new tenancies consider offering a Rent Guarantee for landlords’ peace of mind. It’s also a great selling point.

Attract new business

Are you confident that your handling of client money (rent, deposits etc) is being done correctly? Being able to reassure landlords that their money is in safe hands with you is essential. If you are struggling to provide the level of service that you’d like, then consider outsourcing to a specialist Client Accounting Service Provider (CASP**).

It’s also vital that you are compliant with current legislation and up to date with industry trends, best practices, and regulatory changes. Demonstrating this will reassure your clients and make you stand out from the competition.

Your business compliance:  Read an overview of the basic business compliance requirements for all agents here.

Staying in the loop: Sign up to industry newsletters to keep up to date and feel more connected.

What’s that on the horizon?

Once you know what is coming you need to ensure that you are on target to comply with any new requirements. Getting ahead of the game will reduce stress levels down the line!

Here are some of the key things to be aware of:

Fire Safety (England) Regulations 2022

These Regulations actually came into force on 23 January 2023 as a result of the Grenfell Tower tragedy public inquiry. They apply to all buildings in England that comprise two or more domestic premises although the specific requirements depend on the height of the building.

The Regulations place the duty to keep people safe from fire upon the ‘Responsible Person’. This will likely be the landlord, building owner or property manager who has control over the premises.

Depending on the height of the building, these requirements include carrying out fire risk assessments, providing tenants with fire safety instructions, checking doors and providing floorplans to the local fire rescue service.

For full details of all responsibilities click HERE

Material information
Last year National Trading Standards introduced a 3-phase project to define what constitutes ‘material information’ for property listings. ‘Part A’ said that, for letting agents, a property’s council tax band or rate, rent and deposit must be included on all property listings, including agency website, window cards and property portals.

Portals will flag any listings where details are left empty by the agent.

‘Parts B & C’ will cover information which could affect the consumer decision, such as if the property uses a septic tank or if it’s location puts it at risk of flooding. It is not known when these will go live but it’s worth starting now to collect and record this information.

Minimum Energy Efficiency Standards (MEES)

Have you checked the EPC rating of all of your properties?

Currently regulations state that a new tenancy cannot be granted if the property has an EPC rating below E, unless it is on the PRS Exemptions Register.  From 1 April 2023 this will apply to all properties. The penalty is up to £150,000 per breach! (based on rateable value of the property).

Furthermore, the government released proposals to increase this to band C on all new tenancies from 2025, and existing tenancies by 2028.

Help your landlords source tradesmen qualified to do the required improvements and point them towards potential sources of funding. Local authorities are a good place to start.

Renters Reform

The Renters’ Reform Bill is due to be debated and voted on before May 2023. The main proposals in the bill include:

• A ban on section 21 ‘no-fault’ evictions
• Replacing all tenancies with periodic tenancies
• Extension of the Decent Homes Standard to the sector
• Creation of a register of landlords
• Introduction of a Private Renters’ Ombudsman
• More rights for pets in properties

Whilst there will likely be a transition period, the changes could come in faster than anticipated, and agents will have to adapt quickly.

Make sure you follow all the news on this and have a plan on how you will adapt when the changes come in.

Don’t be shy!

Finally, don’t overlook promoting your business. After all, you want people to actually find you and see what fantastic service you offer!

In today's digital age, having a strong online presence is crucial. The majority of people looking for a service do their research online by checking out the website, social media and review sites.

Websites should be current, user-friendly and reflect the agency’s core values. Display your fees, CMP certificate and Redress Scheme to reassure prospective clients that you are a professional business - so they choose you over the agency down the road. You don’t have to spend a fortune but you do need to think about the message you are sending out.

**  The Letting Partnership is a CASP (Client Accounting Service Provider) who can remotely process your rent payments giving you confidence your client accounting is being done correctly. They can set up a client account for you if you need it too. For information call 01903 477900 or send a message.  To sign up for their monthly newsletter click HERE (unsubscribe at any time)

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