Insurers Endsleigh surveyed* landlords who say that using a letting agent saves them £1910 a year more than if they marketed their own properties.
As one of the country’s leading specialist insurance providers for letting agents, landlords and young professionals, Endsleigh surveyed 500 UK landlords to uncover what it says are “widespread misconceptions” among landlords about the true value for money offered by lettings agents.
Staggeringly, says the company, more than half of the landlords surveyed (53%) currently choose to rent out at least one of their properties privately without the help of an agent, with more than two in five of those indicating that cost is a reason for this.
These new findings come amid speculation that the recently announced ban on letting agent fees for tenants will cause costs for landlords to rise and potentially will be passed on to tenants in the form of rent increases. And consequently, a perceived lack of value for money from UK letting agents could see a rise in the number of landlords who choose to let and manage their own properties in the future.
The claimed savings are related to services which help to let properties quicker, guarding against costly void periods. Three in four (76%) of respondents reported that their agent also helps them with legal and financial matters.
The survey also suggests that relationships between letting agents and landlords are not just about the financial benefits. Half of landlords (50%) were most attracted to their current agent because of their local knowledge, and more than two in five (44%) claim that excellent service is a deciding factor.
Another factor identified was “quality of life”. Two in five (41%) feel that the main benefit of working with an agent is that it provides peace of mind, and a quarter of landlords (25%) communicate with their lettings agent on a weekly basis.
David Hadden, Head of Property, Endsleigh said:
“Landlords who use letting agents find them very useful – especially before a letting – and state they help to reduce stress, free up time and, critically, save them money.
“The perceived cost of using a letting agent is among the biggest deterrents for many landlords, but those that do use an agent are on average reporting significant savings. Landlords considering letting their properties directly to tenants in light of changing legislation must seek advice to avoid potentially compromising their income, their quality of life and the provision of support and service that agents can offer.”
*This research was conducted by OnePoll on behalf of Endsleigh, and was of 500 UK landlords that rent out at least one property through an agency from 20 October 2016 to 14 November 2016.
Endsleigh claim letting agents save landlords £2k pa https://t.co/ahQm1j5jpt
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