Increasing numbers of landlords are considering instructing lettings agents for the first time because of increased red tape and the complexity of repairs.
Comparison service Uswitch, which has conducted a survey of some 2,000 landlords, says 63 per cent of private landlords are thinking of switching to a lettings agency with 32 per cent citing ‘no longer having to deal with repairs’ as the main reason.
A similar amount - 30 per cent - say legal requirements and problems with tenant finding and vetting encourage them to ask agents.
In the same survey Uswitch found that the most common reasons landlords consider selling their property is because it no longer turns a profit or repairs are too cumbersome.
Some 29 per cent of responding landlords say letting agents have more knowledge of the market with a similar amount saying using an agent would reduce the risk of scams or fraud.
Just 16 per cent of landlords questioned say they will continue to manage the process themselves.
Uswitch spokeswoman Kellie Steed 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.
“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 to 20 per cent of profits”
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Bully for the letting agents as they can take in more cash.
It is not just about taking "more cash" Sandra. We also take the stress!
The building next to the one we manage had a partial wall collapse - we through our emergency service line got a phone call at 10pm to advise that for safety reasons the tenants in our building were being evacuated. So we sorted it out for the LL - including an on site visit at 11:30pm (a 25 min drive from our home). The next night, we received a phone at 2.40am from the council.
A good letting agent does actually provide a good service that is worth paying for. When you need them most is when you find out whether you have a good letting agent or not!
It makes more sense for landlords to use agents, many private landlords are oblivious to the laws and just wing it until, it goes wrong then they engage with agents for help or they just continue and brake the law unknowingly. The regulation should be that Landlords must hold a qualification and be members of a professional body who will insist on CPD, or alternatively use an agent that does have this.
I found that the findings from the Uswitch survey further emphasize the benefits of landlords using lettings agents to navigate the increasing red tape and complexity of repairs in the rental market.
Unfortunately l have found that the letting agents can be worse than the tenants. One firm from Walsall went bust owing over a million. Staff are often commission only, with a huge turnover of staff and agents are often franchised where the franchisor takes no responsibility.whatsoever. The tenant fees ban has crucified agents income. Politicians haven't heard of market forces.
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