Leaseholder Landlords

When a flat is purchased as a rental, the buyer effectively takes on two roles: as a leaseholder who agrees to abide by his contract with the freeholder in the form of the lease (with the freeholder ensuring there are no breaches) and as a landlord, who provides housing for both private and social tenants. In turn, the tenants are bound by their own contract with the landlord in the form of a tenancy agreement. This creates the leaseholder landlord and effectively links the PRS to the (much larger) leasehold sector.

This can be cleary demonstrated by looking at the management structure of a block of flats which at any one time can look something like this:
Take the managment structure of a block of flats for example, which at any one time can look something like this:

1. The freeholder landlord (who may or not be registered on the Land Registry) uses a managing agent from an unlicensed and unregulated sector. A letting agent (who has branched out into leasehold management) may also be used and again is sourced from an unlicensed and unregulated sector;
2. A RMC/RTMCo using the services of a managing agent. They may also use a letting agent who has branched out into leasehold management (as above);
3. A leasehold BTL landlord who hands over the management of the flat(s) to a letting agent, sourced from an unlicensed and unregulated sector;
4. A leasehold BTL landlord who has signed a contract with the local authority, giving up his property to them under their Private Sector Leasing schemes. They in turn use managing/letting agents from the private sector (as above).