One of the biggest mistakes buy-to-let landlords make is underestimating the cost of monthly or annual property maintenance.
You know to include the relevant stamp duty, taxes and rental agent fees when planning your buy-to-let budget – but what about maintenance costs? You need a realistic property maintenance budget to look after your investment.
Find out how much landlords spend on rental property maintenance in our quick guide.
Your Property Maintenance Budget
According to the letting agent platform Howsy, buy-to-let maintenance costs private landlords up to 28% of their annual income. This equates to an average annual investment in the rental property maintenance of £2,313 in the UK.
However, this is the national average and will not apply to every region. The annual maintenance costs of your rental property will depend on:
- Your location
- How well your tenant will treat your property
- How often you will conduct maintenance
- Types of materials or services you use
- The cost of professional help
It’s easy to miss rental property maintenance hidden costs. It’s best to create the budget first using your regional average as a guide.
Regional and National Variations
Prices of property, services, materials among other things will vary regionally and nationally. These affect your annual rental property maintenance costs.
Research conducted by Howsy states that the region with the lowest average maintenance costs is Glasgow at just 13% of annual rental income. Whereas the most expensive annual maintenance cost is in the East of England at 28%.
What Does Property Maintenance Involve?
Landlords are responsible for providing tenants with a safe place to live in a good state of repair. Here are some examples of maintenance tasks to keep your rental up to code.
Repairs and Refurbishments
Before accepting your first tenant or in between tenants, the property will need some attention. Repairing general wear and tear, a fresh coat of paint, and deep cleaning soon adds up. Of course, any extensive damage caused by the tenant will be covered by their deposit or your insurance. These repairs can be as expensive or as cheap as you decide.
The amount of this annual fee will depend on the insurance company you choose and your policy. It may save your BTL business if serious problems happen. Keeping on top of property maintenance will reduce the risk of extensive damage and having to claim on your insurance.
As the landlord, it’s your responsibility to arrange regular rubbish collection with the local council. Depending on your property and local council regulations, this may come out of your council tax. A more expensive option would be to hire a private company.
This is one of the most expensive maintenance costs you’ll experience as a BTL landlord. A broken-down boiler, blocked drains, or electrical issues could use an unexpectedly large amount of your maintenance budget. Regular inspections by trained professionals will prevent future problems and are required to comply with regulations.
Overall, it’s important to budget for the worst-case scenarios and research cost-effective services. For example, you can save time and money on your plumbing and heating costs by using Clipfix which is only £20 per call. We’re the most cost-effective solution on the market today and our engineers are available 24/7 to help you with any issue.
Managing Rental Property Maintenance
Maintaining your rental property to a high standard is essential in caring for your investment and attracting more tenants. Landlords should always get help with rental repairs and maintenance from trained professionals.
Have a plumbing and heating issue at your rental property? Contact us to find out how we can help with fast and affordable property maintenance services.