Being a landlord is a challenging role, and it is often expensive. The process of purchasing property for the buy-to-let market is expensive, and there are many costs involved. However, once a tenant is in place, there are other costs to consider. It is imperative you maintain a good standard in the rental property, and this means you need to consider repair and maintenance costs.
At Smith Melzack, we know the pressure on landlords to maintain a good standard of rental property. We help many Wembley landlords maintain property, as part of our property management service, and we are here to assist you.
If you are unaware of the costs associated with maintaining the cost of rental property, newly released figures from Howsy will be of interest. Howsy is a lettings management platform, and they determine the cost of maintaining the average buy-to-let property across the UK is 2,313 (pounds). This accounts for 28% of the annual rental income available to landlords.
Calum Brannan, founder and CEO of Howsy, said: "Covering maintenance costs is an essential part of managing your buy-to-let investment as failing to do so will not only reduce the profitability of your investment as tenants look elsewhere, but it can also land you in hot water legally if your property is not fit for purpose."
When it comes to budgeting for maintenance, there is a school of thought regarding the one per cent threshold of the cost of buying the property. Calum Brannan continued by saying; "Using the one per cent threshold of the purchase price of your property is a sensible place to start when budgeting for maintenance and although it acts as a rough rule of thumb, it should cover everything but the very worst damage to your property."
The March Budget is looming, and there are concerns in the rental industry as to whether there will be support for landlords. Calum Brannan said; "Of course, the government's consistent attack on the profitability of the buy-to-let sector could have alternative consequences as landlords cut corners on maintenance to get by, but as our research shows, this doesn't have to be the case. The UK rental sector is a vast and varied one and investing in the right property, in the right place, will see operating costs remain palatable and profits remain robust."
These are challenging times for landlords, but help is available. As a local letting industry specialist in Wembley, we aim to provide local landlords as much guidance and support as we can. If you are a Wembley landlord, and you would like assistance in managing rental property, we can help.
At Smith Melzack, we know landlords are under considerable pressure, and require a helping hand. We are pleased to offer a range of property management services, and services aimed at assisting landlords care for their tenants and rental property. If you are a Wembley landlord and looking for help in managing your rental property, get in touch today, and we will be more than happy to assist you.