Property letting tips | New landlords urged to consider true costs
When many people come to letting, they may believe that making profit is a simple case of balancing rental income against mortgage costs; however, renting out properties can be far more expensive than this and experts have urged individuals to consider the true costs of becoming a landlord before entering the sector.
Having property to let is noting increased popularity, largely because landlords see it as a way to provide funds for their retirement; however, entering the market without truly knowing how much renting out homes can cost is inadvisable. In addition to ensuring that rental amounts cover a mortgage, there are many other costs involved that people need to be aware of; otherwise landlords could find themselves out of pocket.
Property expert Sarah Rushbrook said that refitting carpets, kitchens and bathrooms every decade needed to be planned for, whilst consideration needed to be given to insurance costs and vacancy periods. She added that, to ensure that enough profit is made, mortgage repayments should be no more than 65% of the total income received.
Another important area to consider is property management, with Charlton Grace in Basingstoke being ideal for ensuring ongoing maintenance and tenant care. Whilst this is an expense in itself, it can keep tenants happy and properties in sound condition over the months. This can actually offer savings in the long run and ensure that landlords have the retirement fund that they so dearly crave.
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