Lomond challenges five common myths about letting agents

Lomond challenges five common myths about letting agents

Lomond, a fast-growing agency group, addresses misconceptions about letting agents, emphasising their value especially following the introduction of the Renters Rights Act. The firm highlights the importance of professional management beyond simple tenant finding.

Lomond’s Group Director of Property Management, Sophie Danes, has outlined five widespread myths about letting agents that she believes need correcting. These myths relate to the cost-effectiveness of self-management, the difficulty of finding tenants, the availability of information online, the care agents have for properties, and the purpose of property management services.

The agency stresses that the Renters Rights Act has increased the complexity of compliance for landlords, making professional letting agents more essential than ever. This article explores Lomond’s perspective, the implications for landlords and agents, and what landlords should consider in light of these insights.

Myth-busting: What Lomond says about letting agents

Myth one: It’s cheaper for landlords to manage themselves

Many landlords believe they can save money by self-managing their properties and avoiding agent fees. Lomond counters this by pointing out that the real costs often come from arrears, void periods, compliance failures and other mistakes rather than management fees. They liken paying for a letting agent to an insurance premium, providing peace of mind and risk mitigation that self-management may lack.

Myth two: Finding tenants is the hard part

While some landlords think tenant-finding is the main challenge, Lomond argues that move-in day is just the start. Tenant referencing reduces risk but does not guarantee a good tenancy. Letting agents bring experience and judgement to tenant vetting and manage deposits correctly, often avoiding disputes that require adjudication by the Tenancy Deposit Scheme. Effective ongoing management is crucial to maintaining tenancies.

Myth three: All information letting agents provide can be found online

There is a vast and complex body of legislation governing lettings and property management. Although online resources exist, Lomond stresses that bespoke, tailored advice from experienced agents cannot be fully replaced by generic online information. Their recent Quarterly Insights report found that the Renters Rights Act has prompted many landlords to switch to fully managed services to understand their new responsibilities.

Myth four: Letting agents don’t care about the properties as much as owners

Lomond says caring for properties is vital but must be supported by robust systems, processes and expertise. Professional agents manage risk and mitigate issues effectively through trusted supplier relationships, continuous monitoring, and experience, making managed services a worthwhile investment.

Myth five: Property management is about convenience

The misconception that managed services are only for busy landlords is challenged. Lomond highlights that management protects income, ensures compliance and preserves asset value. Proactive inspections and tenant communications help identify and resolve issues early, preventing costly repairs and giving landlords reassurance.

Context: The Renters Rights Act and evolving landlord responsibilities

The Renters Rights Act has introduced significant changes to tenancy law and landlord obligations, increasing compliance complexity. Landlords now face stricter rules on deposits, property standards, and tenant protections, making professional advice and management more necessary. Lomond’s emphasis on the Act’s impact reflects a broader trend of landlords seeking expert support to navigate regulatory demands.

Many landlords who previously self-managed are reconsidering their approach due to the risks of non-compliance and the operational challenges of managing tenancies under the new legal framework. Letting agents are positioned to provide the expertise and systems needed to meet these evolving requirements efficiently.

Practical implications for landlords and agents

For landlords with small portfolios, the myths Lomond addresses highlight common pitfalls. Self-management may seem cost-saving but can lead to expensive compliance errors or voids. Professional letting agents offer risk management that can protect rental income and asset value.

Letting agents should continue to emphasise their value beyond tenant-finding, focusing on compliance, tenant relations, and property maintenance. The shift towards fully managed services noted by Lomond suggests a growing market for comprehensive management amid regulatory changes.

Landlords should review their current management arrangements in light of these insights and consider whether their approach adequately addresses compliance risks and tenant management challenges under the Renters Rights Act.

Remaining uncertainties and what landlords should watch

While Lomond’s perspective is clear, some uncertainty remains around how the Renters Rights Act will be enforced and interpreted over time. Landlords should monitor official guidance and sector updates closely. The cost-benefit balance of self-management versus agency management will vary by individual circumstances and property types.

Additionally, the quality and scope of letting agent services can differ widely. Landlords should assess agents carefully, seeking those who demonstrate strong compliance knowledge, proactive management, and transparent fee structures.

What landlords should consider now

• Review your current management strategy and assess if it adequately addresses compliance and tenant management risks.
• Consider the potential hidden costs of self-management, such as voids, arrears, and compliance failures.
• Seek tailored advice from professional letting agents who understand the Renters Rights Act and can provide ongoing support.
• Evaluate letting agent services beyond tenant-finding, focusing on risk management, property care, and tenant relations.
• Stay informed about regulatory developments and official guidance to ensure continued compliance.

Supporting landlords with TLA membership and ORBIT BETA

The Landlord Association (TLA) offers members access to up-to-date compliance resources and practical information relevant to managing rental properties under evolving legislation like the Renters Rights Act. Membership provides landlords and agents with guidance on tenancy law, possession procedures, rent collection, safety obligations, and deposit handling.

TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is being developed to help landlords organise their portfolios, manage rental documents, and keep records of key actions such as inspections and communications. ORBIT aims to support landlords in maintaining evidence of compliance and managing their properties efficiently amid regulatory changes.

Exploring TLA membership and ORBIT BETA access can help landlords prepare for ongoing regulatory demands and enhance their management practices with tailored support and tools.

Looking ahead, landlords who engage with professional advice and leverage compliance resources will be better positioned to protect their investments and adapt to future regulatory updates.

Sources: Letting Agent Today