Landlords do not have a great public image. Their demise started in the Fifties with Peter Rachman — the infamous London property owner who allowed dwellings to fall into disrepair and was reportedly violent towards tenants. The result: “Rachmanism” — the practice of being a bad landlord. Over the past decade, with the rise of the buy-to-let mortgage, this image of the negligent and abusive landlord has given way to one of a more greedy investor who pushes up house prices by mopping up properties that could otherwise be purchased by first-time buyers. This breed of landlord is characterised by a reluctance to repair and maintain properties and they are also known to withhold deposits.

According to the Deposit Protection Service, a surprisingly high number of landlords fall into this category, with one in three failing to put tenants’ deposits into a government-accredited scheme, which has been a requirement since April 2007.

The good news for tenants is that the downturn has unearthed a new type of landlord — the socially aware. After falls of as much as 30 per cent in the price of some residential property, many of the highly leveraged, profit-hungry investors have dropped out of the market.

Replacing them are institutional property funds with millions of pounds to spend, such as London & Stamford and Aviva Investors. These funds have to offer quality homes that people want to live in for a long time or they will not make a return. For individual buy-to-let entrepreneurs, the arrival of these funds means that they will have to raise the bar to compete, although some believe that they are already setting a good example to those newly arrived in the field.

The new socially aware landlords see themselves as offering a customer service by providing affordable accommodation of a good standard for people who cannot afford to buy homes for themselves.

National Landlords Association; landlords.org.uk

Seeing things from the tenant’s view

Parmi Janagle, a former sales and marketing executive for a pharmaceutical company, has been a buy-to-let investor since 2006 and has 12 properties in Hartlepool, Hull and nearby towns. Janagle’s job had been “all about customer service” and he applies this ethic to his tenants.

“I try to see things from their point of view. We provide homes, not boxes, and consider all aspects, such as the cost of utility bills. It has to be good value.”

Jangle, 40, says that he also helps tenants with benefit claims as many struggle with the forms. Janagle bought his properties from an investment club, but struggled at first. “I was losing money. I couldn’t sell them and they weren’t renting, so I got rid of the letting agents and dealt with tenants myself.”

His approach means that many tenants stay for more than two years. Janagle, who runs the website mypropertyclinic.com, recommends courses run by the National Landlords Association. “They teach you the regulations,” he says. “But you should also do your own research; understand people’s needs and be honest.”

‘If you are going to do this properly, it is a seven-day business’

Steve Perrons is a 40-year-old buy-to-let investor who owns 220 properties in the Midlands and Yorkshire. He started buying houses in Nottingham 15 years ago and expanded his portfolio into Doncaster, Hull and Grimsby when property prices in Nottingham became too expensive to make a decent rental return. He now runs a property agency, Perrons Davis (perronsdavis.co.uk), based in Hull.

“When I came in to buy-to-let, there were a lot of old-style landlords who owned properties and let them run down,” he says. “Most of the properties I have bought have needed work. I have turned around whole streets with burnt or boarded-up houses. We do the ceilings, roofs and wiring, and safety-test the electricity. We put in new carpets, kitchens, bathrooms and double glazing.”

A lot of Perrons’ tenants are young couples starting out. About a third are on social security benefits. Part of being a good landlord, he says, is being as understanding as possible when a tenant falls on hard times. “If someone is liable for rent but is struggling to pay it, we won’t enforce the full lease term, we will just let them go and relet the property.”

The rental agreements are also designed for people who cannot afford to pay a deposit upfront. Instead, they are asked to provide a guarantor. “This makes it more affordable — some people in Hull can’t afford a £1,000 deposit,” Perrons says. “Parents normally act as guarantors. It has to be a homeowner. The scheme has proven very popular. We have had to call on guarantors to make payments at times, but we have rarely had to take someone to court.”

Perrons’ advice to landlords is to treat it like a job and sort things out quickly. “People become landlords as a sideline, but if you are going to do it properly you need to understand it is a seven-day-a-week business. “Many people who come into property don’t understand things like deposit schemes, or that they should set money aside for repair work.

“My business is 24/7. If there is a burglary, we board up the property and make it safe immediately. If there is damp, we get the estimates and sort it. Boilers are always a priority. Nothing is left.”

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