Most landlords manage properties themselves despite higher costs

Most landlords manage properties themselves despite higher costs

0:05 AM, 4th July 2024, About 3 days ago 4

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More than half of landlords say they manage their portfolios themselves, treating it as a full-time job.

Surprisingly, those who self-manage are often spending more on property management, the survey from buy to let lender Landbay reveals.

Their bills are more than what they would pay a letting agent or property management company.

However, just 19% of landlords said they relied on a property management company, with a quarter using an agent.

‘Treating their portfolios as a full-time business’

The lender’s sales and distribution director, Rob Stanton, said: “We are increasingly seeing landlords treating their portfolios as a full-time business, with the sector becoming more of a career choice.

“There is no doubt that managing your own portfolio can be very rewarding although taking professional advice at the right time is essential.”

He added: “We continue to see high levels of activity across the buy to let sector.

“The sector is proving remarkably resilient, despite some challenges.”

Preference for limited companies among landlords

The survey also reveals a preference for limited companies among landlords, with 65% owning their properties through this structure.

Landbay also found that for landlords who said they didn’t have another job, the majority owned small portfolios of between four to 10 properties.

That’s closely followed by 34% who owned more than 20 properties – 18% owned between 11-20 properties.


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Comments

Paul Essex

13:04 PM, 4th July 2024, About 2 days ago

I suspect an apples and pears comparison with self managing costs including repairs, certificates etc and the agency costs excluding the extra.

moneymanager

18:27 PM, 4th July 2024, About 2 days ago

We used to use an agent but found the gap between expectation, false perhaps, and delivered service to be wider than that at Bank Station, interims inspection reports didn't reflect reality and maintenance was more expensive and less effective.

Rob Thomas

11:18 AM, 6th July 2024, About 2 hours ago

I agree with Paul Essex. There is no reason why using a managing agent would be cheaper. In my experience managing agents also won't do as good a job of looking after your properties as you.

Alison Clark

12:14 PM, 6th July 2024, About An hour ago

Hi We are managing just the one property. This is currently in both my husband and my name not a LTD company.

I understood there would be no difference tax wise? There is £60k approx mortgage left to pay. I fall under the 20% bracket and my husband 40% we were considering a transfer of equity to me?

It’s very confusing when reading advice.

Please can anyone advise?

Thank you

Alison

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