Three quarters of lettings professionals report that the Renters’ Rights Act has increased their administrative workload, with a quarter describing the impact as significant, according to new research.
A survey conducted by tenancy management software provider Propoly examined how the legislation has affected lettings professionals more than 100 days after the Act came into force. The research gathered responses from industry professionals about operational changes, technology usage, and anticipated challenges.
Compliance burden drives workload increase
The findings indicate that 73% of lettings professionals have experienced an increase in administrative tasks, with 25% reporting a significant impact on their organisations. Compliance and record keeping emerged as the primary contributor to the increased workload, accounting for 18% of responses, followed by rent reviews at 16% and possessions and tenancy endings at 14%.
The regulatory changes are also affecting team structures, with half of respondents indicating that lettings and property management teams now need to work more closely together. The operational pressures come as proptech firms develop new tools to address rental sector challenges.
Technology fragmentation remains an issue
Despite the increased administrative demands, technology adoption remains fragmented across the sector. Only 17% of respondents reported using one primary technology system to manage the new requirements, while an equal proportion still rely heavily on emails, spreadsheets and disconnected processes. The majority, 66%, operate with multiple disconnected technology systems.
The survey found that 61% of respondents manually transfer, re-enter or duplicate information between different systems during a tenancy. When asked where better integration would be most beneficial, 17% cited landlord communication and decision making, with tenant referencing, compliance and tenant communications each receiving 16% of responses.
As a result, 52% of respondents said improved system integration would enhance operational efficiency, with only 5% believing it would have a negative impact. These operational challenges mirror broader concerns across the property sector, where administrative and compliance issues affect various market segments.
Future operational concerns
Looking ahead, keeping up with compliance requirements was identified as the biggest operational challenge, cited by 28% of respondents. Maintaining profitability whilst managing additional work was the second largest concern at 21%, followed by general management of increased administrative workload at 16%.
Sim Sekhon, Group Chief Executive at Propoly, said: “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.”
He added: “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.”
Sector adapts to new regulatory framework
The findings suggest that lettings businesses face ongoing challenges in adapting to the new regulatory environment. The requirement for improved systems integration and the need to maintain profitability whilst managing compliance obligations indicate that the sector is still adjusting to the operational implications of the legislation.
As businesses work to embed the new requirements into daily operations, the focus is shifting towards managing compliance and service delivery efficiently, with technology integration emerging as a key factor in addressing the administrative burden.
