Things to bear in mind
• Property upkeep – maintenance costs for the property.
• Letting agent’s fees – letting agents charge around 10% of the monthly rent for finding and vetting tenants with an additional cost of around 5% if you require a full management service.
• Ground rent / service charges – applicable to leasehold properties.
• Legal insurance – to cover costs from evicting tenants in the event of non-payment, very important, as this can be very expensive.
• Insurance – building insurance and contents insurance for the items provided as part of the rental agreement.
• Furnishings – the purchase of any furniture. If the property is to be let furnished, make sure you are covered for this by your home insurance.
• Gas / electrical appliances – cost of maintaining appliances and ensuring they comply with any regulations such as safety tests.
• Decorating costs – the property may require work ranging from painting, to a new bathroom suite before it is suitable for letting to tenants.
When choosing a property to let, it is wise to take advice from local letting agents to determine what types of properties are in need and which parts of the town are good or most wanted. They can tell you if there is a University in the town, and if students are looking for somewhere to live.