BTL Maintenance Costs Revealed
The cost to a landlord for maintaining a buy to let property over 12 months in the UK has been revealed.
According to Howsy, a property management platform, they have put together the figures to show how costs vary around the country.
There's no doubt that amateur landlords are particularly at risk when they do not appreciate the range of maintenance costs that they could potentially be facing.
That's in addition to the tax implications, and the additional 3% stamp duty as well as their mortgage costs, void periods and letting agent fees.
Landlords need an annual budget to cover repairs
Howsy says that landlords need an annual budget to cover repairs and maintenance of £2,344 a year - which may wipe out any profits a landlord will make.
In London, this cost rises to £4,746 and in the North East, the region with the lowest repair costs, it's £1,328.
The chief executive of Howsy, Calum Brannan, said: "For an investor, the BTL sector can be a minefield and it's imperative they do everything to maximise investment returns.
"While technology allows a great level of control when managing an investment, it's also about the financial side of things. Having to provide a property that is fit for purpose is a legal requirement and it's essential to ensure a reduction of void periods and a happy tenancy."
He adds that the industry standard of having a cash pot that is equal to 1% of the investment property's value is the very least a landlord should have available.
He said: "All buy to let investments need organisation, good preparation and education, whether you have a great management agent or if you go it alone and learn to stand on top of things. A bricks and mortar investment is still among the best."
Rent falls help tenants
Meanwhile, the number of rent rises being experienced by tenants in October fell by 8%, an analysis reveals.
The figures from Arla Propertymark highlight that 50% of agents say they saw rent prices rise, that's down from September's figure of 58%.
It's also the lowest amount since June, though it is up from October's figure last year.
The chief executive of Arla, David Cox, said: "The figures this month show some relief for tenants and while the number of landlords who are increasing rents has dropped, year-on-year, the figures are worryingly high.
"The looming general election and Brexit uncertainty has strained the sector and rents are likely to remain high, with tenants feeling the pinch."