Letting agents gain as Renters Rights Act prompts more landlord outsourcing

Letting agents gain as Renters Rights Act prompts more landlord outsourcing

The share of rental properties managed by letting agents has risen to 66%, driven by landlords seeking help amid the complexity of the Renters Rights Act and evolving compliance demands.

The latest research from Pegasus Insight reveals that the proportion of rental properties using letting agents for some or all aspects of the letting process has increased to its highest level in two years, reaching 66%. This marks a rise from 61% in the first quarter of 2026 and 62% a year earlier. The main growth area is in full property management services, which now cover 25% of rental properties, up from 20% in the previous quarter.

These figures come as landlords face an increasingly challenging regulatory environment following the introduction of the Renters Rights Act, alongside ongoing changes to compliance requirements and pressures on rental accommodation. The research indicates that 34% of rental properties not fully managed still use agents solely to find tenants, while 6% employ agents for letting and rent collection. The remaining 34% of properties are managed entirely without agent involvement.

Research details landlord time commitments and management choices

Landlords who self-manage their properties spend an average of 51 hours per month overseeing their portfolios, compared with just 11 hours for those using full management services. Overall, landlords spend an average of 33 hours monthly on rental management tasks. The time commitment rises significantly with portfolio size, from 18 hours per month for those with one to five properties to 83 hours for landlords with 11 or more.

Interestingly, landlords with larger portfolios and multiple buy-to-let mortgages are not necessarily more inclined to outsource property management. Among landlords with four or more buy-to-let mortgages, 39% of properties are self-managed, compared with 31% for those with one to three mortgages and 33% for those without mortgage borrowing. Pegasus Insight suggests this may be because landlords with larger portfolios are more likely to be full-time landlords, with 37% of those holding four or more mortgages operating full time, compared with 13% of those with fewer mortgages and 18% of those without mortgages. Full-time landlords may therefore prefer to retain direct control rather than outsource management.

Regulatory complexity drives demand for professional letting agents

The Renters Rights Act has introduced new obligations and complexities for landlords, adding to existing compliance requirements in the private rented sector. This evolving regulatory landscape is increasing the administrative burden on landlords, particularly those managing multiple properties or balancing letting responsibilities with other commitments.

A spokesperson for Pegasus Insight commented that the growing demands of being a landlord, combined with legislative changes, make it unsurprising that more landlords are turning to professional letting agents for support. The significant time savings offered by full management services can be especially valuable for landlords seeking to keep pace with regulatory changes and reduce the administrative workload.

Implications for landlords and letting agents in practice

For landlords, the rising complexity of tenancy law and compliance means carefully assessing whether self-management remains viable or whether outsourcing to a letting agent is preferable. The time savings and expertise offered by agents can help landlords meet new legal obligations under the Renters Rights Act, such as enhanced tenant protections and stricter possession procedures.

Letting agents are positioned to benefit from this trend by offering tailored full management services that address the new regulatory demands. Agents should ensure their services clearly demonstrate compliance expertise and the ability to handle the administrative and legal complexities introduced by recent reforms.

Landlords managing smaller portfolios may find the time commitment increasingly onerous, making professional management more attractive. Conversely, full-time landlords with larger portfolios might continue to self-manage where they have in-house knowledge and resources, though they must remain vigilant about compliance risks.

Areas of uncertainty and what landlords should watch

While the Renters Rights Act is now in force, some details of its practical application and enforcement remain to be clarified through case law and regulatory guidance. Landlords should monitor updates from government and sector bodies to understand how the new rules will be interpreted and enforced.

It is also unclear how the evolving compliance landscape will affect costs for landlords, both in terms of professional fees and potential penalties for non-compliance. The balance between outsourcing and self-management will continue to depend on individual circumstances and the capacity to keep up with regulatory changes.

Key considerations for landlords amid regulatory change

• Review current management arrangements to assess whether full or partial outsourcing to a letting agent could reduce compliance risks and time spent.
• Keep abreast of official guidance on the Renters Rights Act and related tenancy law reforms to ensure ongoing compliance.
• Document all management activities carefully, especially if self-managing, to provide evidence of compliance in case of disputes or inspections.
• Evaluate the costs and benefits of professional management services in light of the increased regulatory burden and potential time savings.
• Consider the impact of portfolio size and landlord status (full-time or part-time) on management capacity and compliance responsibilities.

Supporting landlords through regulatory complexity with TLA

The Landlord Association (TLA) offers membership that provides access to practical compliance resources and guidance tailored to the challenges posed by the Renters Rights Act and evolving tenancy regulations. Members can benefit from document templates, checklists, and expert information designed to help landlords meet their legal obligations.

TLA is also developing ORBIT, a new property management and compliance platform currently in BETA testing. ORBIT aims to assist landlords and letting agents in organising property records, managing tenancy documentation, and recording key compliance actions. This includes features to help track repairs, inspections, and communications, which are critical under the new regulatory regime.

Exploring TLA membership and ORBIT BETA access can support landlords in reducing the administrative burden and staying informed about regulatory developments affecting the private rented sector.

Looking ahead, landlords and agents should anticipate further regulatory updates and enforcement activity as the Renters Rights Act matures. Staying informed and considering professional support will be increasingly important to manage risks and maintain compliant tenancies.

Sources: Letting Agent Today