With a recent surge in short-term lets available in the UK, hundreds of new landlords will have entered the rental property market, many of whom will be unfamiliar with the complex landscape of property management and maintenance.
That’s according to Paul Bullard, Product and Professional Services Director at SFG20, the industry standard for building maintenance, who has shared his insights on how landlords can ensure they are remaining compliant and in line with tightening building regulations and the consequences of non-compliance.
Recent ONS data has revealed that Hartlepool is the UK’s number one rental hotspot, as the area reports a 122% increase in listings from January to December 2023. Blackburn and Tamworth have also reported a 100% increase in short-term rentals in the past year.
Alternatively, the Merseyside town of Crosby saw the biggest decrease in availability of short-term lets across 2023 with a 17.24% reduction in availability. Several Scottish areas such as Glasgow (9.50%), Edinburgh (7.59%), Argyll and Bute (3.12%) and Aberdeen (2.92%) saw a decrease.
Bullard said: “In a time where there is significant new legislation to understand and comply with, including the Fire Safety Act 2021 and the Building Safety Act 2022, the expectations in building management have never been higher. However, the ability to absorb and make the necessary update to your property to always remain compliant is a real concern for many landlords.
Building maintenance is no longer a backseat issue for property owners, but the cornerstone of health and safety, and efficient running costs. A ‘fix on fail’ approach might work for non-urgent maintenance, but the approach can mean that legally required tasks are not completed, creating significant risk to both building owners and tenants.
“New landlords entering the short-term let market may be unaware of the stringent regulations governing property maintenance, safety standards, and tenant rights. Failing to comply with these rules can result in a series of damaging consequences.”
These include financial penalties, which can amount to several hundred thousand pounds:-
- Financial penalties, at an average of £150,000
- Lawsuits
- Unexpected costs from reactive maintenance
- Decreased property value
- Increased insurance premiums
- Rent revenue reduction
- Reputational damage
“On top of this, landlords must be aware of the value of long-term cost management over short-term savings when it comes to maintaining their properties,” said Bullard. “By maintaining their rentals effectively, they will extend its working life and save significant money.”
Photo by Azzedine Rouichi on Unsplash
