Landlords may increasingly need professional support as Renters' Rights Act compliance demands consume more time and bring the potential for mistakes.
Now, research by The Letting Partnership, carried out four months after the Act took effect on 1 May, has found 71% of letting agents believe they are becoming more important to landlords.
It says that 63% of them had experienced an increase in time spent on compliance and administration, including 29% reporting a significant rise.
When asked about the biggest effect on their business, 46% pointed to increased administration, 18% identified compliance work and 23% pointed to disputes or uncertainty.
Compliance demands more time
Chris Mason, the firm's chief operating officer, said: "The Renters' Rights Act has understandably generated a huge amount of discussion around what it means for landlords and tenants, but four months on from implementation, we're also starting to see the operational impact it is having behind the scenes within letting agencies.
"More administration, greater compliance requirements and increasingly complex processes all require additional time and resources."
He added: "For agents, the challenge is ensuring that this increased workload doesn't come at the expense of the robust processes and controls needed to run a compliant business.
"Interestingly, that same complexity could ultimately strengthen the case for professional management."
Pressure reaches landlord clients
Some 79% of agents described themselves as completely or mostly prepared for the new framework.
However, 21% said they were only somewhat prepared or worse, including 13% who were not very or not at all ready.
Almost two-thirds (63%), reported a negative effect on landlord sentiment, while 17% had seen a positive response and 21% said there was no noticeable change.
Half expect the private rented sector to be weaker within 12 months, with reduced supply cited by 38%, fewer landlords by 33%, higher rents by 14% and greater use of managing agents by 10%.
Other surveys find strain
Meanwhile, Propoly has found that 73% of lettings professionals had experienced increased administration under the Act, with 25% describing the rise as significant.
Two-thirds of agencies were found to be using several disconnected technology systems, while 17% still relied heavily on emails, spreadsheets and other manual processes.
Its research found 61% were manually transferring or duplicating information during a tenancy and 52% believed better system integration would improve efficiency.
Its group chief executive Sim Sekhon said firms must balance compliance and service delivery with profitability.
An NRLA members' survey also found 66% of privately rented homes in England and Wales are now administered by an agent to some degree, reaching a two-year high.
The organisation's chief executive, Ben Beadle, said: "Landlords are ultimately responsible for ensuring the properties they rent meet all required standards.
"However, with two thirds of rental properties now entrusted to some degree to the care of an agent, it is vital that they and their tenants can have confidence in the services that these letting agents provide."
What this means for student landlords
Simon Thompson, the managing director of Accommodation for Students, said: "Many student landlords will know that using a capable agent could save considerable time as the Act's requirements become part of everyday property management.
"Delegating the work does not remove the need to ensure it is completed properly, so the agent's knowledge, processes and controls matter."
He added: "Landlords should ask how deadlines are monitored, information is transferred and important decisions are recorded.
"They will also need to appreciate that higher agent fees may reflect heavier workloads, but inadequate advice could create much greater financial and legal exposure."
