According to a recent study, almost two-thirds (63%) of private landlords are considering switching to a letting agency or property manager.
The main reason for considering the switch is to no longer deal with property repairs (32%), followed by avoiding legal requirements (30%) and finding tenants (30%).
Meanwhile, more knowledge of the market (29%) and avoiding scams and fraud (27%) are other significant factors.
Uswitch.com buy-to-let mortgage expert, Kellie Steed, said that with the Renters Reform Bill and higher interest rates, landlords may face challenges in the coming months, but there are ways to keep profits afloat during the cost-of-living crisis.
She suggests that switching to a letting management company offers some attractive advantages, including a strong knowledge of changing regulations, taking on responsibilities such as repairs and disputes, and offering alluring packages for landlords in return for around 10-20% of profits.
Steed also highlights that remortgaging a property can save landlords money, as any equity held in the property will give them access to cheaper rates, and releasing equity on a property can provide a cash sum for support.
Steed concluded: “While it can feel like selling up is the only option, there are other ways landlords can hold onto their investment.”
