Landlord Accreditation – Unlike in many countries, the lettings industry in the UK is largely unregulated. Anyone can become a landlord or set up a letting agency. The lack of regulation has allowed many people to get started in the industry without having to jump through complicated and expensive hoops.
Many of them have gone on to be successful landlords with multiple properties, benefitting their tenants and the industry. At the same time, the lack of regulation means that some of those who become landlords are what the media terms ‘rogue landlords’, letting unsafe property that could put their tenants at risk, or allowing problem tenants to live in their properties, not checking references or dealing with anti-social behaviour.
Rogues and Rights
There is no doubt that ‘rogue landlords’ damage the lettings industry. They contribute to the industry’s often poor image, and the perception amongst many that most landlords are looking only to make as money as possible, regardless of the impact on their tenants and those around them. The reality is that the majority of landlords in the UK own only one or two properties, and are just looking to enhance their income a little. Many find the regulation that already exists difficult to keep up with: more would mean that they would struggle to stay in the industry, especially if it meant increased costs.
Accreditation and Regulation
Growing concern about the impact of problem landlords who put the safety of their tenants and their neighbours at risk has meant that schemes designed to tackle them have also increased in recent years. These schemes require some landlords, usually those who want to let property in particularly run-down areas, to register with the local authority (for a fee, of course). To register, landlords have to meet certain conditions, such as a requirement to check tenant references or to make sure they have adequate landlords insurance in place.
The exceptions are the controversial registration schemes in Scotland and in the London Borough of Newham, which require all landlords within the area to register. The Newham scheme has only come into effect this year, so is too young to judge fairly. However, the Scottish scheme continues to attract plenty of criticism among landlords and others. The scheme has existed since 2006, but many believe it has failed to target rogue landlords, with only 40 having been refused registration. Landlords groups fighting the introduction of more compulsory registration schemes claim that rogue landlords will not register, regardless of whether a scheme is compulsory or not. The Scottish experience seems to bear that out.
Landlords who want to help improve their own image and that of the industry as a whole should look at joining voluntary accreditation schemes and professional organisations. Landlords who can say they are members of these are likely to be more attractive to tenants, as they are seen to be responsible professionals. With the private rented sector becoming the only housing choice for many, that’s important.