Almost two-thirds of landlords managing their own properties would consider switching to a letting agency or property manager, according to a Uswitch study.
As soaring interest rates force mortgage rates up, the buy-to-let landscape has left some landlords apprehensive about what direction to take with their properties, or if they should continue renting them out at all. In light of this, Uswitch surveyed 2,000 private landlords on how likely they are to transfer to a property manager or letting agency, and 63% said they would be open to doing so.
According to the study, almost a third (29%) said the switch to an agency would be prompted by a desire to access stronger knowledge of the market, while a similar proportion (32%) said they would be prepared to pay an agent to alleviate their need to deal with repairs personally.
Other reasons for switching would be to avoid the hassle of finding tenants (30%) and to transfer legal responsibilities of a property (30%). Over a quarter (27%) said they would switch to a letting agency to help them avoid scams and fraud.
According to Uswitch research, the most common reason landlords would consider selling their property is a lack of profit (35%), while a third (32%) said repairs are a reason they would sell their homes entirely.
Kellie Steed of Uswitch commented: “With 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. 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. Many offer increasingly alluring packages for landlords in return for around 10% to 20% of profits.”
