Landlords switch to full management as Renters’ Rights Act kicks in

The Renters’ Rights Act is driving growth for letting agents, according to new research from Pegasus Insights.

Their latest Landlord Trends report says that 66% of landlords now use a letting agent for some or all of the lettings process – a two-year high.

The share of landlords going for full management has also risen to 25% from 20% in the previous quarter.

What’s behind the rise? Full management saves landlords a lot of time. According to the report, the average self-managing landlord spends 55 hours a month overseeing their properties, compared to just 11 for full management.

On top of that, managing rental properties is only getting more complex. New regulations like the Renters’ Rights Act, and soon the PRS’s version of Awaab’s Law, are giving landlords more work to do, and bigger fines if they don’t fulfil their obligations.

According to Bethan Cooke, director of Pegasus Insights, “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.”

Letting agents have a great opportunity to grow their businesses by offering to take on regulatory burdens on behalf of landlords – and showing them how many hours they could save every month.