0:02 AM, 10th March 2023, About 7 months ago 1
Fears about the future of the private rented sector (PRS) are leaving many landlords considering whether they should sell up or switch to using an agent, research reveals.
The findings from Uswitch highlight that 63% of private landlords would consider using a property manager or a letting agency.
And almost a third (29%) of landlords say a switch to an agency would be due to their stronger knowledge of the market.
However, the most common reason that landlords give for switching is for not having to deal with repairs for 31%.
Kellie Steed, Uswitch.com’s buy to let mortgages expert, said: “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.”
She added: “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.”
Uswitch says that property maintenance is estimated to consume, on average, around a fifth of a landlord’s income.
Another common reason for landlords to consider selling up is a lack of profit for 35% – and a third (31%) of landlords say having to deal with repairs is the second most common reason.
However, 30% of landlords say they don’t fancy the hassle of finding tenants and they would prefer to transfer legal responsibilities of their property.
The survey also highlights that agencies are also more likely to accept tenants: 99% of independent professionals had to reject a tenancy application at some point, while just 88% of estate agents have done so.