Lettings agent use hits two-year high amid rising rental responsibilities
Being a landlord has become more demanding, says Pegasus Insight’s Bethan Cooke, so lettings agents are being called on more frequently.
The proportion of landlords using lettings agents has reached its highest level in two years, research suggests.
Two thirds of landlords now employ an agent for some or all aspects of the letting process, according to the latest Landlord Trends research from Pegasus Insight.
The figure has risen from 61% in the first quarter and 62% a year earlier, with the increase driven primarily by growing demand for full property management services.
A quarter of rental properties now use a full management service, up five percentage points from 20% in the previous quarter.
The findings come as landlords face an increasingly complex regulatory environment, with the implementation of the Renters’ Rights Act, changing compliance requirements and continued pressure on rental accommodation placing additional demands on property owners.
It is perhaps unsurprising that more landlords are choosing to seek professional support, particularly with the day-to-day management of their properties.”
The research reveals that, for those properties not fully managed, 34% of rental properties use an agent solely to find tenants, while a further 6% employ an agent for letting and rent collection. The remaining 34% are managed without an agent.
The research also highlights the time commitment involved in managing rental properties, with landlords spending an average of 33 hours per month overseeing their portfolios.
Those who manage their properties themselves spend an average of 51 hours per month on rental management, compared with just 11 hours among landlords employing a full management service.
The time commitment also increases considerably with portfolio size. Landlords with between one and five properties spend an average of 18 hours per month managing their rentals, rising to 83 hours for those with 11 or more properties.
However, larger buy-to-let borrowers are not necessarily more inclined to outsource management. Among landlords with four or more buy-to-let mortgages, 39% of properties are self-managed, compared with 31% among those with one to three mortgages and 33% among those without mortgage borrowing.
This may reflect the fact that larger portfolio borrowers are considerably more likely to be full-time landlords, with 37% of those holding four or more buy-to-let mortgages operating full time, compared with 13% of those with one to three mortgages and 18% of those with no mortgage borrowing.
As a result, they may be less inclined to outsource property management to an agent.
Landlord demands
Bethan Cooke (pictured), director of Pegasus Insight, says: “Being a landlord has become an increasingly demanding responsibility, and the legislative and regulatory changes now facing the private rented sector are adding to that complexity. It is perhaps unsurprising that more landlords are choosing to seek professional support, particularly with the day-to-day management of their properties.
“The difference in the amount of time spent managing properties is striking. For landlords who are juggling rental responsibilities alongside other commitments, or who are concerned about keeping pace with changing requirements, a good letting agent can provide valuable expertise and take on a substantial administrative burden.
“As the responsibilities associated with letting property become more complex, professional agents have an increasingly important role to play in helping landlords understand and meet their obligations, while ensuring tenants receive a professional and responsive service.”
