The number of landlords using letting agents has reached its highest level in two years, as the time and complexity involved in managing rental properties continue to increase.
Research from Pegasus Insight shows that 66% of rental properties now use a letting agent for at least part of the letting process. This represents an increase from 61% in the first quarter of the year and 62% during the same period a year earlier.
The biggest change has been the growing use of full property management services. One in four rental properties now uses this option, up from 20% in the previous quarter, suggesting more landlords are choosing to hand over the day-to-day responsibilities of running their rentals.
However, not all landlords are opting for comprehensive support. Around 34% of rental properties use agents solely to find tenants, while 6% rely on agents for both letting and rent collection. The remaining 34% are managed directly by landlords without professional assistance.
Managing rental properties takes time
The research highlights the considerable time commitment involved in being a landlord. On average, landlords spend 33 hours each month managing their rental portfolios, although the figure varies significantly depending on how much responsibility they handle themselves.
Landlords who manage their properties independently spend approximately 51 hours per month on rental-related tasks. By comparison, those using a full management service spend an average of just 11 hours.
Portfolio size also makes a substantial difference. Landlords with between one and five properties spend around 18 hours per month managing their rentals. For those with 11 or more properties, the average rises sharply to 83 hours.
Despite these demands, owning a larger portfolio does not necessarily mean a landlord is more likely to employ an agent.
Among landlords with four or more buy-to-let mortgages, 39% of properties are self-managed. This compares with 31% among landlords with one to three buy-to-let mortgages and 33% among those without mortgage borrowing.
One possible explanation is that larger portfolio landlords are more likely to operate as full-time professionals. The research found that 37% of landlords with four or more buy-to-let mortgages work full time as landlords, compared with 13% of those holding one to three mortgages and 18% of those without mortgage borrowing.
Professional support becomes increasingly valuable
Bethan Cooke, director at Pegasus Insight, said managing rental properties is becoming more demanding as landlords face additional legislative and regulatory requirements within the private rented sector.
She suggested that professional letting agents can help landlords navigate these changes while reducing the administrative workload associated with property management.
As responsibilities grow, landlords must weigh the cost of professional management against the time and expertise required to oversee their properties effectively. For those balancing rental investments with other commitments, using an agent may offer a practical way to manage the increasing demands of being a landlord.
