According to Pegasus Insight’s Landlord Trends research, more landlords have enlisted an agent to manage some or all of the letting process.
The share has risen from 61% in Q1 and 62% last year, with the trend largely due to more demand for full property management services. The report found that a quarter of rental properties now used a full management service, up five percentage points from the previous quarter.
Pegasus Insight said this was down to the increasingly complex regulatory environment, such as the Renters’ Rights Act and changing compliance requirements.
Among the rental properties that are not fully managed, 34% use an agent solely to find tenants, while 6% utilise them for letting and rent collection. The remaining 34% are managed without an agent.
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Landlords with large portfolios spend more time managing
Pegasus Insight found that on average, landlords spent 33 hours per month managing their portfolios.
Those who managed their portfolios themselves dedicated around 51 hours per week to this, compared to 11 hours among landlords with a full management service.
Landlords with larger portfolios spent more time overseeing their properties, with those holding between one and five properties spending 18 hours per month on average, rising to 83 hours among those with 11 or more properties.
However, the research found that landlords with more buy-to-let (BTL) mortgages were not more likely to outsource management. Among those with four or more BTL mortgages, 39% of properties were self-managed, compared to 31% among those with 1-3 mortgages and a third without a BTL mortgage.
Pegasus Insight said this suggested that those with larger portfolios were more likely to be full-time landlords. Some 37% of those with four or more BTL mortgages operated full-time, compared to 13% of those with 1-3 mortgages and 18% with mortgage borrowing.
Bethan Cooke, director of Pegasus Insight, said: “Being a landlord has become an increasingly demanding responsibility, and the legislative and regulatory changes now facing the private rented sector are adding to that complexity. It is perhaps unsurprising that more landlords are choosing to seek professional support, particularly with the day-to-day management of their properties.
“The difference in the amount of time spent managing properties is striking. For landlords who are juggling rental responsibilities alongside other commitments, or who are concerned about keeping pace with changing requirements, a good letting agent can provide valuable expertise and take on a substantial administrative burden.
“As the responsibilities associated with letting property become more complex, professional agents have an increasingly important role to play in helping landlords understand and meet their obligations, while ensuring tenants receive a professional and responsive service.”
