More Landlords Choose Letting Agents to Handle Properties
According to a recent survey by Uswitch, due to increased buy-to-let regulations and time-consuming repairs, more and more landlords are deferring letting agents to manage their properties.
Let’s look at the survey in more detail and establish why landlords choose a more hands-off approach to their buy-to-let investment strategy.
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Why Are UK Landlords Considering Letting Agents?
The survey involving 2,000 landlords shows that 63% of landlords considered instructing a letting agency to handle their day-to-day tenancy issues. 32% of landlords cited ‘no longer having to deal with repairs as the formative reason they wanted to go with a letting agency.
Similarly, 30% of landlords cited difficulty finding tenants and navigating legal requirements as reasons for pushing them towards letting agents.
In addition, landlords also reveal that one of the main reasons they consider selling a home is cumbersome and complicated repairs.
29% of landlords also stated that letting agents know more about the local market would make them less likely to fall for scams.
In contrast, only 16% said they would continue with their hands-on buy-to-let approach.
Kellie Steed, Uswitch spokesperson, said:
“With 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.
“While it can feel like selling up is the only option, there are other ways landlords can keep profits afloat during the cost-of-living crisis.
“Switching to a letting management company offers some attractive advantages and gives landlords the scope to hold onto their investment. Many offer increasingly alluring packages for landlords in return for around 10-20% of profits”.
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What Are the Benefits of Using a Rental Management Company?
Letting agents offer numerous benefits for buy-to-let property landlords and are typically one of the best options for those seeking a more hands-off investment.
Some of the benefits include:
- Staying up-to-date with property legislation
Rental property law can be complicated. It is easy for landlords to overlook tiny details that could hamper their legal rights during a tenancy dispute. Letting agents are well-informed on the latest buy-to-let rules and law changes. For instance, they handle deposit schemes, fire safety protocols and more. They would handle the complexities of UK legislation and ensure your property undergoes the correct checks.
- Managing rent collection
A property management company like Legacy Lettings is an ideal way of ensuring landlords receive their rent on time. In addition, they handle any rental disputes. As such, they will also offer support and advice if the tenant cannot pay their rent.
For property investors seeking a more hands-off experience, this is likely the best route to take.
- Managing tenancy reviews and renewals
When tenancy contracts end, landlords may need guidance to ensure things go smoothly and avoid disputes about rent raises.
A skilled management company can avoid unnecessary expenses and ensure repairs are made to the home promptly.
Savvy landlords should be looking for three things from any investment:
- Good value
- Attractive rental yields
- A lack of stress
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Interested in UK Property Investment?
Proper research and help from a property investment company can help you find excellent value properties in rental hotspots. However, a letting agent will also make the investment more hands-off, taking care of the day-to-day tenancy business and allowing you to focus on expanding your portfolio further.
Want to stay in the loop? Get the latest property investment tips in 2023 with RWinvest.