Sometimes landlords underestimate the costs involved in letting out their properties.

Estate agency fees

Many estate agents change 8-10% per annum for finding a tenant, it doesn’t generally end at the agency finding you a tenant, you may be liable for paying for the finders fee year after year of the tenants tenancy. You may also be liable for paying a deposit registration fee.

Are you planning to evict your tenant?

Replacement of furniture and white goods

When an inventory is carried out upon the start of a tenancy, the inventory clerk makes a list of items that are in the property, any item that breaks, it is the landlords responsibility to replace it, this includes sofa, wardrobes, fridge freezer and similar items.

How to handle bad tenants?

Service charges and major works

Flats and some freehold houses within gated developments are responsible for paying service charges. Some of the service charges include hot water and heating, which results in high service charges for the landlords. At times, you may be hit with high service charges due to major works as roof replacement, window changes and communal area updates. These will eat up your rental income from the property.

What are section 21 and section 8 notices?

Unaccounted maintenance costs

Wear and tear can cause leaks in the roof, leaks in the bathroom and kitchen or even flooding in some areas. As a landlord you need to have funds available in case of unexpected such costs.

What is the best way to deal with rent arrears?

Mortgage interest relief

Section 24 is diminishing landlords rights to offset mortgage interest costs against tax gradually over the next 3 years.

How to attract the best tenants?

Freeholder costs

A freeholder can charge you fees for renting out your property if subletting is not permitted by the freeholder, depending on the lease. You may also be liable for paying lease extension fees depending on how long your lease is.

Tax implications for expat landlords

 

Property Management

We speak with many landlords who are far away from their property, some simply have no time to manage a property, some had enough of managing their own property for many years and decided it is time to hand it over to a property manager. The cost of a property manager is between 5-8% of the annual rent, simply an amount many of the landlords have not accounted for.

How to keep your tenants happy?

Section 21 notices

You may decide to have the 21 notice served by a solicitor and if it goes to court you would be liable for £355 court fees that was unaccounted for.

What is West London Property Networking

Please contact Pelin Martin to book a 30 minute free property consultation on

+0208 994 7327

pm@bluecrystallondon.co.uk