BTL running costs

[GeorgiaH]

Hi, I just want to check if I'm on the right track on how much it will cost me to run a buy-to-let. I’ve made a list below, does this look right/ is there anything I’ve missed out?

• Letting agent (I’ve spoken to a couple of local ones and they’ve said it would cost around 10% of rental income)

• Insurance - approx. £170  (Cost taken from here: https://www.nimblefins.co.uk/landlord-insurance-uk/average-cost-landlords-insurance)

• Safety certificates:

  • Energy performance certificate - £120 (https://www.reallymoving.com/energy-performance-certificates/guides/how-much-does-an-epc-cost)

  • EICR - approx. £200  (https://mylocaltoolbox.co.uk/cost-guides/eicr-cost/) 

  • Gas safety certificate - £120 (https://www.homehow.co.uk/costs/gas-safety-certificate)

• Allowance for maintenance - 5-10% of rental income

• Contingency funds (in case tenant-free) - one equating to 3-6  months rent 

N.B. I googled these costs - do they look about right or have they now increased due to inflation?

[haf1963]

Look pretty reasonable. My insurance is higher so worth checking that and my certs are lower but overall you look like you have everything covered. If you are getting it managed by an agent then its likely they will chuck in random costs.

[Stuart Phillips]

I think a contingency of 3 months rent is wise, but i suspect in the present market you wont face gaps that large. Lenders for example assume 1 month in 12 you will have a void period.

Have you factored in accountancy fee's? If you are doing this in a company then thats likely about £1000 a year, regardless of the number of properties. If personal then perhaps half that.