The good, the bad and the ugly
MONEY – Renting your property is a good source of income. Getting a good rental yield will cover your mortgage and other bills you may face.
INVESTMENT – Hiring a Property Manager will look after your investment and ensure you are compliant with the ever-changing legislation.
BUILDING EQUITY – Not only are you receiving income every month, you are paying off your mortgage; in a few decades you will be the owner of a property someone else paid for.
WEAR & TEAR – Being a Landlord, you must account for fair wear and tear on your property. This car be as minor as scuffs on wall to a faulty boiler, washing machine etc. This will also depend on the number of occupants as well as the age of the property and how well you have maintained it over the years.
VOID PERIODS – Although every attempt is made to avoid long vacant periods, unfortunately, sometimes these can’t be escaped. With previous tenants not allowing access for viewings, new applicants not passing referencing or an unaccounted maintenance problem, void periods sometimes have to accommodate the extra time taken to get these all in-check.
TAXES – Although you can offset part of the maintenance costs, the taxes on rentals can be high. It is a good idea to speak with a financial advisor to see if there is a more profitable way to operate your rental property.
BAD TENANTS – The vetting process is thorough, however, this cannot predict how a tenant will live during the tenancy. Whilst it is very uncommon, tenants who damage a rental property or stop paying the rent is not unheard of. With this, refurbishment works and the evictions process can be costly and lengthy.
CATASTROPES – Major maintenance issues, for example roof leaks can result in the roof repair, decoration internally, replacement carpets because of the leak. Landlords should double check with their landlord’s insurance to confirm how much cover they have in circumstances like this, if you have the correct cover in place this can save you money, if not this can result in you being out of pocket
All of this said… recruiting a professional letting and property management company will give you peace of mind, that whatever crops up, your best interest are at the forefront at all times.