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New research carried out by Kent Reliance has found that landlords are spending a third of their rental income on costs relating to their buy to let properties.
The survey data showed that landlords spend, on average, £3,632 per year on costs, excluding mortgage payments. The highest costs are in London, but Welsh landlords spend the most on property costs, typically around £10,000 per year.
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London is Most Expensive for Landlords
Running costs vary considerably in different London boroughs. Landlords with properties in Kensington and Chelsea pay more than £13k a year keeping their properties in good order whereas landlords with properties in Camden only spend £9k a year. Outside London, the costs are much lower, with homes in South Bucks relatively cheap to run at £5k a year.
However, as you might expect, properties in central London attract much higher rents, so the higher rental income offsets high running costs, so central London landlords are actually better off than South Bucks landlords.
Wales is Cheap for Landlords
The same applies to Welsh properties where, despite the low running costs, rental income is also low, so in Merthyr Tydfil, for example, running costs are a whopping 43% of rental income.
Running a rental property isn’t cheap. Letting agent fees are a considerable expense for landlords, but insurance, professional fees, and utilities are all expensive. There are also maintenance costs, which all add up, especially on older properties.
Landlords should always weigh up costs versus rental income before investing in a buy to let property.
