Apart from the initial cost of purchasing the property, have you considered if you can afford the property whilst it is empty, as you will still be required to pay for
The mortgage, if there is one
The gas, electric and water, although these should be minimal if the property is empty
The council tax, Landlords with an unoccupied and unfurnished property available to let on the rental market can claim a 100% Council Tax reduction for the property for up to 4 weeks per year.
Buildings insurance – there is specialist rental insurance that will include building and the basic contents ie kitchen units, carpet and curtains.
To get and keep a good tenant you need to look after your property. Therefore you should think about holding some rental income back to cover any issues and for maintenance work between tenancies. You may wish to consider taking out a monthly maintenance plan that covers your boiler, plumbing, drains and electrics.
As a landlord you are responsible for maintaining a safe environment for your tenant to reside in.
It is also your responsibility to arrange for any repairs to be conducted within a reasonable period of time
Yearly gas safety check, approx £65 – the cost can vary from plumber to plumber. Please note this is a legal requirement, standard penalty is a £6,000 fine for each item and/or 6 months imprisonment. In the most serious cases charges of manslaughter could be brought.
Initial outlay costs:
Marketing fee – this is normally 1 months rent plus VAT
Energy Performance Certificate - £65 plus VAT
Electrical Installation Condition Report – cost vary depending on the size of your property and the electrician
Other costs to consider:
Inventory - starting from £75 plus VAT – we recommend a dated photographic inventory to avoid issues at move out time
Legionnaires test - £65.00 Plus VAT – this can also be conducted by yourself
PAT testing – not a legal requirement, but should be considered especially if the property is fully furnished
If you require the property managing, there are the management fees of either 10% or 13.5% per month.
Having the property professionally cleaned prior to a new tenant moving in
