Being a landlord can be really stressful with so many things to pay for. Although in the long term renting out property can be immensely profitable, there are lots of things to look out for and additional costs you may not have already considered. Here is a few of the most common expenses:
Besides the everyday maintenance of a property, which tenants should take care of themselves, anything that needs external maintenance must be organised by you. Things such as fixing any problems with the water and heating are your responsibility and must be taken care of by yourself and in a timely manner as tenants can withhold rent if they are left without essential resources. It often pays to invest in a decent boiler so that you don’t get complaints from tenants about the water not being hot or having problems heating up their home.
In order to keep your property looking desirable to future tenants it’s important to plan for the periods of time when your property will be empty for you to carry our renovations. These periods are important as they make sure that the home is somewhere tenants want to live attracting a better quality of tenant which will hopefully mean paying less for the upkeep of your property in the long term.
Landlord’s insurance is an essential that must not be forgotten. It covers you and your property from all kinds of different damage that could occur. From fires to flooding and storm damage to other things like theft and vandalism. With a policy like the one from Homelet you’ll be covered for everything from buildings to contents and legal costs, so there will be much less to worry about.
Stamp duty is the tax that is paid on property or land in the UK. A recent government bill means that buy to let landlords will now have to pay an extra 3% on their stamp duty than other home owners. It’s worth assessing how much this will cost you yearly, especially if you own or plan to own multiple properties
On top of all the essential costs for landlords like preparing the house for tenants, decorating, advertising and working with estate agents, these are the extra things which prove expensive and need to be taken into consideration.