Lettings agents report ‘significant’ administrative workload since Renters’ Rights Act
The biggest challenge for agents is dealing with the extra workload in an efficient manner, suggests Propoly's Sim Sekhon.
Three quarters of lettings professionals say the Renters’ Rights Act (RRA) has increased the administrative workload within their organisation, with a quarter describing the increase as significant.
A survey from tenancy management software provider Propoly examined how the new RRA rules have affected the workload and processes of lettings professionals more than 100 days after The Act came into force.
Respondents were asked about the areas of their business most affected by the changes, the technology and processes they use to manage the additional workload, and the operational challenges they expect to face going forward.
The findings suggest that the additional administrative burden is being felt across the sector. Almost three quarters of lettings professionals – at 73% – reported an increase in administrative workload, with one in four – at 25% – saying that the impact on their organisation has been ‘significant’.
The impact is being felt not only in terms of the additional work required, but also in the way lettings businesses need to organise their people, processes and technology.”
Compliance and record keeping was cited as the area contributing most to the increased workload, accounting for 18% of responses. This was followed by rent reviews at 16%, and possessions and tenancy endings at 14%.
The changes are also affecting the way teams work together. Half of respondents said that their lettings and property management teams are having to work much more closely as a result of the new rules.
However, the technology used to support this additional workload remains fragmented for many businesses.
Better integration
Only 17% said their business uses one primary technology system to help manage the new administrative demands. The same proportion, 17%, said they are still relying heavily on emails, spreadsheets and other disconnected processes, while 66% said their business has a number of different, disconnected technology systems in place.
When asked where better integration between systems would be most beneficial, respondents highlighted landlord communication and decision making at 17%. Tenant referencing, compliance, and tenant communications followed with 16% respectively.
This need for greater connectivity was reflected in the amount of manual work still required during a tenancy.
The survey found that 61% of respondents have to spend time manually transferring, re-entering or duplicating information between different systems over the lifetime of a single tenancy.
As a result, 52% of respondents said that better integration between their systems would improve operational efficiency. Just 5% believed greater integration would have a negative impact.
Looking ahead, lettings professionals believe the biggest operational challenge arising from the rental reforms will be keeping up with compliance requirements, cited by 28% of respondents. Maintaining profitability while managing the additional work required was the next biggest concern at 21%, followed by the general management of the increased administrative workload at 16%.
Growing workloads
Sim Sekhon (pictured), Group Chief Executive at Propoly, says: “More than 100 days on from the introduction of the Renters’ Rights Act, it is clear that the impact is being felt not only in terms of the additional work required, but also in the way lettings businesses need to organise their people, processes and technology.
“The challenge for the sector is not simply dealing with more administration. It is making sure that information can move efficiently between the teams and systems involved in managing a tenancy, without creating unnecessary duplication or additional manual work.
“As the new requirements become embedded into day-to-day operations, businesses will be looking for ways to manage compliance and service delivery efficiently while maintaining profitability. Technology has an important role to play, but the value comes from reducing fragmentation rather than simply adding another platform to an already crowded process.”
