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Half Of UK Landlords Don’t Trust Letting Agents


Thursday, August 22, 2013

 

Half Of UK Landlords Don't Trust Letting Agents

Half Of UK Landlords Don’t Trust Letting Agents

Self Management Of Rental Property
Is Preferred To Letting Agents

New research published by Direct Line for Business has revealed that over half of UK private rental sector (PRS) landlords prefer to deal directly with tenants themselves, bypassing letting agent’s fees and avoiding binding long term management contracts.

The research found that 63% of UK PRS landlords have not used a letting agency during the past year, resulting in an annual average saving of £734 (GBP) in fees for a small to medium size rental property portfolio.

UK PRS landlords are still looking at ways to reduce overheads in order to maximise profits and more than half of all UK PRS landlords are attempting to find new tenants and manage the day-to-day running of their rental property portfolio’s themselves. The research discovered that 53% of landlords did not require the services of letting agents or property managers, saving an average of £1,040 (GBP) per year.

UK PRS landlords are utilising the emergence of low cost online property portals to advertise their available rental properties in an attempt to reduce spending costs.

Rental property redecoration, essential property repairs and landlord insurance are the typical bugbears for landlords and it now appears that letting agents fees and property management costs are becoming the most frequently avoided expense.

UK private rented sector (PRS) landlords know that they need to have the appropriate landlord insurance in place to protect their rental property asset, but some 18% of landlords are not insured, that’s 1 in 5 landlords potentially putting themselves, their rental property and their tenants, at risk.  

Landlords may be able to make significant savings by taking the daily management of their rental properties into their own hands, but it’s vital to have adequate landlord or buildings insurance in place should the worst happen.

Buy-to-let is set to continue growing in popularity as a result of strong tenant demand, rising rental prices and much cheaper mortgage rates. However, property management fees can easily reach thousands of pounds per year, so if landlords are able to deal with tenants directly, they can make big financial gains. This could be the reason why landlords appear to be taking a more hands-on approach to renting property.


This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.