What is the real cost of a buy-to-let?

Private Rental May 22nd, 2015

A buy-to-let may not yield the windfull you thought

A study estimated that the total average cost of a buy-to-let property, including letting agent fees, maintenance, repairs, marketing fees and mortgage interest, amounted to £8,359 a year. Souce Platinium property partners

Repairs

  • % of landlords that incur costs: 90%
  • Average cost per property: £376.00

Letting agent management

  • % of landlords that incur costs: 77%
  • Average cost per property: £438.00

Refurbishment and decoration

  • % of landlords that incur costs: 77%
  • Average cost per property:£438.00

Letting agent finder fees

  • % of landlords that incur costs: 76%
  • Average cost per property:£230.00

Exterior maintenance – gardening, window cleaning

  • % of landlords that incur costs: 72%
  • Average cost per property:£279.00

Maintenance fees

  • % of landlords that incur costs: 67%
  • Average cost per property:£506.00

 Cleaning costs

  • % of landlords that incur costs: 66%
  • Average cost per property:£206.00

Service charges

  • % of landlords that incur costs: 66%
  • Average cost per property:£500.00

Mortgage interest

  • % of landlords that incur costs: 66%
  • Average cost per property:£1343.00

Advertising fees to let

  • % of landlords that incur costs: 65%
  • Average cost per property:£177.00

Others

  • Average cost per property:£3866.60

 

The study suggested that in any one year, up to 60pc of landlords face void periods, however, only 12pc of these take this into account when assessing returns.

Without capital growth many buy-to-lets yield very little return.

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