More landlords set to use letting agencies as red tape and repairs headaches rise
Nearly a third of landlords cited ‘no longer having to deal with repairs’ as the main reason for the switching to using a letting agent.
Nearly two out of three (63%) private landlords are thinking of switching to a lettings agency or with a third (27%) doing so to avoid scams and fraud, research from Uswitch reveals.
Nearly a third (32%) of landlords cited ‘no longer having to deal with repairs’ as the main reason for the switching to a letting agent followed by a similar amount (30%) citing legal requirements and the same amount no longer wanting to find tenants.
LACK OF PROFIT
On average, property maintenance is estimated to consume one-fifth of landlords’ income. The most common reason landlords consider selling their property is a lack of profit (35%) and a third (32%) of landlords say repairs are a reason they would sell their homes entirely, the second most common reason given.
Almost three out of 10 (29%) of landlords thought letting agents had more knowledge of the market with a similar amount (27%) saying using an agent would reduce the risk of scams or fraud.
False information and fraud in applications is the main reason potential tenants are rejected, with over a third (34%) of landlords doing so at some point.
Just 16% of landlords said they would continue to manage the process themselves.
CHALLENGING
Kellie Steed, Uswitch Buy-to-let Mortgages Expert, says: “With both the Renters (Reform) Bill and higher interest rates on mortgages having a huge knock-on effect on the residential property investment market, some landlords may find the coming months more challenging than usual.
“Switching to a letting management company offers some attractive advantages and gives landlords the scope to hold onto their investment.
Property managers have a strong knowledge of the market’s changing regulations and can also take on much of the responsibility of owning investment property: lettings, repairs, rental disputes and complaints can all be tackled by an agency.
“Many offer increasingly alluring packages for landlords in return for around 10-20% of profits.”
The Neg reported this week how half of all letting agents could quit the sector within five years due to poor pay.
