There are so many factors that affect the profitability of a landlord that has either one or more investment properties that they are letting out. For instance, the property could remain vacant for quite some time or additional expense could be incurred to replace fixtures and/or fittings. The changes in the taxation of landlords that are being introduced in a few months could also have such an impact.
So, what could a landlord do in order to mitigate a drop in profits? Well, a lot of landlords utilize the services provided by letting agents around the UK and, apparently, the UK Association of Letting Agents (UKALA) has undertaken some research that would indicate that a large percentage of landlords would feel it necessary to stop using letting agents to help them manage their property/properties that are let out to tenants.
Apparently, 57% of landlords use a letting agent’s services. You may find it surprising that the research revealed that 47% of landlords in the UK would stop utilizing such a service no doubt in the hope that their profit levels would improve.
Scotland, at 56%, was the region in the UK that had the highest percentage of landlords that would stop using a letting agent’s services if their profits were to reduce. This was followed by East England at 54% and then the South East at 53%. The region where the lowest percentage of landlords would stop using the services of letting agents was in the West Midlands at 29%.
Of course, many landlords are no doubt of the opinion that many of the letting agents in the UK provide an extremely useful service to them so, in some respects, would it not be a shame if landlords felt it necessary to stop using their services? It will be interesting to see if any and if so how many landlords feel they have to take such action at some point in the coming months.