At a time when the anti-landlord rhetoric has been dialled up to 11 in England, it may come as a surprise that there’s such a thing as “National Landlord Day” in the USA. It has been around since 3 November 2015, and is “the day where we raise our glasses high and cheer ‘To the Landlords!'”.
No, this isn’t satire. You can check it out yourself on the What National Day Is It website 😀
Landlords play a vital role in society. England’s 2.8 million landlords provide homes for an estimated 11,000,000 people, approximately 20% of all households.
Research by PwC commissioned by the NRLA and Paragon Bank in 2024 estimated that the economic contribution of the PRS in England and Wales of landlords with under15 properties is a staggering £45bn per annum. The private rented sector supports approximately 390,000 jobs.
I’ve therefore decided to write about National Landlord Day, and to describe what landlords are and what they actually do.
I raise a tin of the landlord’s friend, Ronseal Anti-Condensation Paint (Amazon link!), to the unsung heros of the private rented sector: to those landlords who actively work in their businesses or who do a really good job via their letting agents. These are the good landlords we rarely hear anything about, because good news doesn’t generate clicks.
PS I admit I’d never heard of National Landlord Day, and am grateful to the good people of Marks Out Of Tenancy, the review site for landlords and letting agents, for telling me about it!
>> Related Post: How to be a good landlord
Quick links
What is a private landlord?
In simple terms, a private residential landlord is someone who lets a residential property to a tenant in return for rent under a tenancy agreement. The default tenancy is currently the Assured Shorthold Tenancy, but that is due to be changed to an Assured Tenancy by Renters’ Rights Bill.
I admit I don’t like the term “landlord” as it’s medieval, classist and gendered. You can watch me complaining about it with my debut Instagram “video” from March 2022.
However, I decided to embrace the term when I created this website, The Independent Landlord, and give advice to help people who want to be good landlords. Somehow “property investor” and “home provider” aren’t adequate replacements.
Who are England’s 2.8 million landlords?
Landlords are incredibly diverse, and most only have one or two properties.
The 2021 English Private Landlord Survey (which is the latest survey) found that 85% owned between one and four properties, with just under half (45%) owning only one rental property. There are comparatively few landlords with five or more properties – only 15%.
44% of landlords are women, which is not the stereotypical view of the ageing male landlord.
What do landlords actually do?
Landlords provide homes for renters to live in. It’s not the same as owning shares or unit trusts, as it involves a lot of work and liability. Some landlords employ letting agents to do this for them. Others do it largely or entirely themselves.
Here’s a summary of what good, compliant landlords do themselves, or have to pay someone else to do on their behalf:
- Buy the property, although some (accidental landlords) may inherit it or have originally bought it to live in themselves.
- Prepare the property for letting. This may involve refurbishment or redecoration, and cleaning. Some landlords buy furniture and appliances, although others (myself included) let properties unfurnished.
- Take out landlord insurance to make sure that they have adequate cover in the event of various insurable risks.
- Obtain certain certificates and licences, eg a gas safety certificate from within the last 12 months, an Electrical Installation Condition Report from within the last 5 years, and an Energy Performance Certificate of at least a band E before the landlord can let the property. In some areas, the landlord will need to get a selective licence, and HMOs may also need licensing.
- The next stage is to find tenants. Landlords can either do it themselves using online platforms, or use agents to find tenants. The tenants will need to view the property, and the landlord will take out referencing of the chosen applicants before issuing a tenancy agreement, registering the deposit and serving all of the relevant paperwork. Many landlords take out rent guarantee insurance.
- Once the tenants move in, the property will need regular inspections, and regular maintenance. It’s important for the landlord to budget for this.
- As part of the management of the property, the landlord will need to ensure that the tenant can report repairs or ask for help with something. Rent payments need to be monitored and chased if they are late.
- When a tenant moves out, they need to return the tenancy deposit after appropriate deductions, prepare the property for let, and start again.
This certainly isn’t passive income. Landlords need to comply with lots of regulations, and this list is just the key ones.
Landlords will need to join the PRS Database and the Landlord Ombudsman when the Renters’ Rights Bill comes into force in 2025.
>> Related Post: Do landlords make passive income?
Didn’t Karl Marx say all property is theft?
Not quite. It was actually a Frenchman, Pierre-Joseph Proudhon, who wrote “Le propriété, c’est le vol” in his 1840 book Qu’est-ce que la propriété ? (Translated as “Property is theft” or “Property is robbery” in his book What is property?).
Proudhon also said that work is the only legitimate source of property, so there’s a debate over what he actually meant by saying property is theft.
Final thoughts
While some believe that private landlords should not be able to let properties to renters, with around 20% of households in England living in the private rented sector, and there being relatively little social housing, private landlords play a vital role in providing homes for people to live in.
Let’s celebrate those landlords who do an excellent job!
>> Related Post: Let’s celebrate women who are excellent landlords
