One of the latest reports into the private rented sector from the comparative service Uswitch states that 63% of private landlords who currently self-manage their property would consider switching to a letting agency or a property manager.
Repairs and regulations
The most common reason (32%) landlords give is so that they would no longer have to deal with repairs at the property. Interestingly, almost a third of landlords (31%) also state that repairs are a primary reason they would consider selling their rental property.
30% of landlords say they would look to an agent so that they do not have to navigate the legal regulations involved in letting a property and the same again said they would appoint an agent to look after finding tenants. The process of finding tenants would also cover the right to rent checks and all the credit and reference checks required during the application, which can be time consuming but must be done correctly to meet legislation.
Almost a third (29%) of private landlords say a switch to an agency would be due to their knowledge of the market.
Avoiding scams and fraud
Over a quarter of landlords (27%) would switch to a letting agency to avoid scams and fraud. False information and fraud in applications is the leading reason potential tenants are rejected, with over a third (34%) of landlords doing so at some point. Poor credit from applicants is another large factor causing tenancy rejection, as 33% of landlords have turned down residents after checking their credit score.
“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,” commented Kellie Steed, Buy-to-let expert and the research author at Uswitch.
“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.”
Full range of services
Pennington offers a fully managed service which is our most popular service with our clients as we take care of everything for the landlord. This gives complete peace of mind to individuals, knowing that their property is not only being well looked after but also that every step in the regulatory process is professionally managed.
To also help with the growing challenges that private landlords face, we introduced a suite of ‘Pick and Mix’ services tailored specifically for landlords who prefer to self-manage, but who may want some support. This includes everything from finding a tenant, dealing with all regulation, carrying out maintenance and repairs and as the name suggests the landlord can pick and mix the services they need, as and when they need them and it is available to all landlords, whether you are a Pennington client or not.
We also provide Let Only and Letting and Rent options too, to complete our full range of service to suits all needs and budgets.
Contact us today, to find out more –
Managing Director / ARLA Propertymark Advisory Board
Tel: 01394 337590
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