Property Management Regulations Explained13 December 2023
If you are a landlord looking for a property management company, you may be wondering if these companies are regulated and who regulates them. Looking for property management companies that abide by regulations is important as landlords can have peace of mind knowing their properties are well looked after.
- Are Property Management Companies Regulated?
- Royal Institution of Chartered Surveyors
- Association of Residential Managing Agents
- Association of Residential Letting Agents
- The Redress Scheme
- The Property Ombudsman
- Future Regulating Bodies
- Do I Need a Property Management Company?
- Finding the Right Property Management Company For You
Are Property Management Companies Regulated?
Several different regulators can regulate property management companies. These regulators have various benefits, so understanding which regulators a property management company works with can help you decide which property management company to choose.
Royal Institution of Chartered Surveyors (RICS)
RICS specifically looks at the Rules of Conduct of property management. This includes advice on handling complaints, understanding UK Residential Property Standards and managing residential properties effectively per the Service Charges Residential Management Code and the 2015 Private Rented Sector Code.
These resources are available to landlords to look through before deciding to choose a property management company so it is advised that landlords read this information to gain a greater sense of how the property management company operates.
Association of Residential Managing Agents (ARMA)
ARMA is a well-established leader in property management. Landlords who choose property management companies with ARMA accreditation can have peace of mind knowing their properties are taken care of.
By being an ARMA-accredited company, there are certain regulations the company is required to abide by. This includes ARMA Bye-laws, RICS Code and ARMA Consumer Charter and Standards as well as other relevant legislation.
Additionally, there are many resources available to property management companies such as advice and support as well as updates on industry news. This means landlords can operate knowing the property management company they have chosen is up to date with the latest news making them knowledgeable in the industry.
Association of Residential Letting Agents (ARLA)
ARLA offers a range of property management courses perfect for landlords wanting to increase their knowledge and skills in property management. This regulator puts landlords first by protecting them when looking for a property management company. With this added layer of protection, landlords can be content knowing their properties are handled professionally and with care.
The Redress Scheme
In 2014, it was established by the UK Government that it would be a legal requirement for property management companies to join a Government-approved redress scheme. As of 2018, there are two approved schemes: Property Redress Scheme and The Property Ombudsman.
As a landlord looking for a property management company, you must look for a company registered with one of these two schemes to ensure your prospective tenants are protected should they be unhappy with anything.
The Property Ombudsman
The Property Ombudsman is involved with various aspects of the property industry. This includes estate agents, letting agents, and property management companies. In the context of property management, members of this regulator have specific responsibilities they must observe. The main aim of The Property Ombudsman is for customers to have a point of contact should they need to escalate any issues with members of the regulator.
Future Regulating Bodies
In 2017, it was proposed more regulation is needed for letting and managing agents in England. This prompted the formation of The Regulation of Property Agents Working Group where recommendations surrounding this topic were given, including a model for an independent property-agent regulator.
The Government has since stated it will work towards improving practices within the property industry. This means there could be new regulating bodies that provide different benefits for property management companies and landlords. It is therefore important to stay up to date with the current regulations to ensure you, as a landlord, are operating to a high standard and your chosen property management company is also working within guidelines.
Do I Need a Property Management Company?
The role of a property management company is to provide you with a stress-free environment where your needs are met. As a landlord, you can negotiate with property management companies about what you need and what they can provide to you.
Property management companies are usually flexible with what they can offer and how much responsibility you want to give to them. However, the level of input property management companies have can depend on what you need. For example, if you want as little responsibility as possible, a property management company might be able to offer you this but at a higher price.
By understanding what a property management company can do for you, you will be able to decide if a property management company is right for you.
Finding the Right Property Management Company For You
By ensuring the property management company you choose is a member of at least one of these regulators allows you, as a landlord, to be at ease knowing you and your properties are protected and operating to a high standard.
At Level Up, we are committed to providing a stress-free experience, ensuring our customers come first. Understanding the responsibilities of both a landlord and a property management company equips you with the knowledge of how to manage your properties successfully. Contact us today to kickstart your property management journey.
Property Management Regulations FAQs
What are the types of property management?
There are four main types of property management. This includes residential, commercial, industrial, and special purpose. At Level Up, we provide management options for a range of different properties, such as block management, residential property management, vacant property management, and corporate property management.
If you need any advice concerning these property management types, don’t hesitate to contact us today.
What should property management companies do?
Generally, the main role of a property management company is to deal with day-to-day tasks, screen prospective tenants, and arrange repairs and maintenance for your properties. This gives landlords more time and less stress as they have fewer responsibilities.
Defining what you need from a property management company and researching which company suits your interests is important.
Can you change property management companies?
Often property management contracts have a minimum term. This means you may need to complete an initial period before you are allowed to leave that company. However, before making any rash decisions, it could be beneficial to try and resolve any problems with your current property management company first.
If you wish to change property management companies, it may be worth looking at your contract to see what your conditions are.