A piece of research by Platinum Property Partners outlines that around 25% of landlords are failing to take all costs into account when calculating their returns.
From garden maintenance to advertising, or letting agent fees to emergency repairs, they esitmated the average annual cost is £8359 – and that many landlords fail to account for many of them when planning a purchase or calculating their return on investment.
Make sure you have accurately calculated costs for a new property before you buy. Something that looks like it gives a good return may not look so good if there are high running costs. While you may be able to charge a higher rent, in most areas it won’t be possible to go above the typical market rate.
If your landlord does not properly calculate for costs they may be more reluctant to make necessary repairs. When choosing a property, remember to check out the landlord as well. New landlords who have just bought their first property and ‘accidental’ landlords who are being forced to let out a home are the ones most liklly to have not calculated costs accurately.