New research has revealed that landlords are usually much better off when they operate though a letting agent, despite recent concerns that the costs of doing so might rise to a point where it ceases to be financially viable. Those fears certainly seem to be unfounded as the recent research shows that letting agents can actually save landlords almost £2,000 a year. Plus it’s not just financially that landlords feel the benefit of letting agents.
Minimising Void Periods is Key
When landlords operate through a letting agent, they are far more likely to avoid void periods where their property remains empty. Many tenants these days go straight to a letting agent in the hopes of identifying an ideal property to rent and thus the pool of potential is so much wider when the landlords use letting agents to identify tenants as well. Operating privately can of course save the landlord from paying the letting agent’s fees, but that restricted access to potential tenants can end up costing much more in void periods.
Nearly Half of UK Landlords Now Use Letting Agents
The recent research was conducted by insurance company Endsleigh and their results showed that nearly half of all private rented sector landlords in the UK are now operating through a letting agent. The primary reasons given for this increased usage of agents is the peace of mind it gives them thanks to the agents taking care of many of the stressful factors involved in being a landlord such as organising maintenance and collecting rent. A significant 41% of landlords stated this mind peace as their reason for using letting agents. Endsleigh’s survey also revealed that 25% of the landlords who use letting agents communicate with their chosen agent just once a week.
It was also this research which discovered that letting agents can, on average, help landlords save nearly £2,000 a year by minimising those dreaded void periods. Those landlords who chose to operate independently of a letting agent found themselves saving a little under £160 a month on fees, though it is when Endsleigh compared the rental income and void periods incurred by landlords with and without letting agents that it was revealed that using a letting agent can ultimately save a landlord nearly £2,000 per year (or an average of £1,910 to be exact).
Other Reasons Why Landlords Use Letting Agents
The research also dug a little deeper into what exactly letting agents do for the landlords that they surveyed, with a significant percentage citing their help with legal and/or financial matters. Of course, with 76% of those surveyed agreeing, the primary reason was the help letting agents’ provide with finding tenants. This is often due to the local knowledge an agent has, with 50% of those surveyed agreeing that an agent’s local knowledge was the deciding factor in their decision to use an agent.