Are you thinking of dipping your toe into the world of property management? In 2018, the Private Landlord Survey (PLS) stated that the number of landlords in the UK has risen by 25%. But what are the real costs of being a landlord?
If you are thinking of investing in a rental property then you should prepare your finances for hidden property costs. By researching ahead of time you can avoid unforeseen circumstances that could damage your investment.
So how do you steer clear of the hidden expenses of being a landlord? Here is everything you need to know to save money in property management.
Health and Safety Certificates
A rental property must be made safe and secure for the tenant by performing safety checks on electric and gas-powered appliances. You can expect to pay £55 or more for a gas safety certificate (CP12). The cost can rise with additional appliances.
Discounts may be available if you own multiple properties. You can save money by shopping around for the best quote available.
Legal Expenses
Legal fees can add up to a significant amount when you decide to rent out your property. You may also wish to enlist the help of an accountant to keep your finances organised. New tenancy agreements and other legal requirements can also add to your list of expenses.
You must pay income tax, landlord insurance, and other legal fees to stay within the law. Legal cover is available as part of your landlord’s insurance should you need legal support.
House Renovations
Another cost associated with being a landlord, and one that can be especially expensive if not done right, is house renovations. While it may seem cost-effective to take on such projects yourself, it often becomes more costly in the long run due to any mistakes you make along the way. Therefore, it is always wise to seek advice from a professional when embarking upon house renovations. In particular, bathroom fitter experts can provide valuable industry insight when it comes to larger-scale projects that involve plumbing and electrical work – both of which can be tricky and costly if not handled correctly. By using professionals for this type of work, you can rest assured that any renovations will be completed safely and efficiently without any added costs down the line.
Insurance Costs
Landlord insurance is one of the unavoidable landlord costs. The price can vary depending on the type of property you own. You should choose cover for the building, fixtures and fittings, and contents.
Defining factors such as location and security will determine how your quote is calculated.
Maintenance and Repairs
Landlords spend 28% of their income on maintenance and repairs. All sorts of problems can occur during a tenancy from broken boilers to leaky pipes. The cost of calling out engineers and technicians can be expensive – especially in an emergency.
You can reduce these costs by using video call technology like Clipfix. Setting up a video call with an expert who can guide you through fixing your issue could save you a large chunk of money. This method is also quicker and easier than waiting for an engineer to arrive in person.
If you use a property management service then your costs could be higher than if you did the work yourself. Check with your letting agent what their fees could be to maintain your property in your absence.
Avoid the Hidden Costs of Being a Landlord
Being a landlord will be a straightforward process now you know what to look out for. You can set aside funds for any unexpected expenses and have peace of mind that your new investment will run smoothly. Your tenants will also appreciate how prepared you are in the event of an accident or emergency.
Do you want to cut the costs of maintenance in your rental property? Clipfix can provide expert advice in urgent situations. Find out more about hassle-free plumbing solutions by registering your interest with Clipfix today.
