SMF - Just Installed!

General running cost

Started by yngajjar, June 14, 2019, 06:05:15 AM

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yngajjar

I am a new Landlord and just wanted to check the running cost with someone.
Besides the letting agent's fees, Mortgage Interest, Landlord Insurance, and general repair cost. What else am I missing that I should be considering?
Like for example: If am letting my property to tenants that are going to pay there own bill. Do I still have to pay council tax? and what else am I missing?

Hippogriff

Why would you pay Council Tax (especially if letting to Tenants who will pay their own bills)?

KTC

The test is not whether the tenant pays their own bill, but whether the property is being let under one tenancy agreement or different one for each individual rooms etc.

Hippogriff

#3
I, of course, understand that... I'm asking a question of the OP because Council Tax is a bill... please [can we] refrain from muddying the waters with an OP who's already clearly confused and demonstrating they have a lack of attention-to-detail... there's no mention of HMO (are we to assume that here?) and (I think) it'd be a brave new Landlord who dove straight into HMO territory... I want further information, hence the question vs. assumption.

madferret

Regular outgoings also include:

Gas service/annual landlords certificate
Cost of running repairs if required (good idea to keep a war chest available)
Buildings insurance
Accountant fees (if you are going to use one)

Incidentally I do not use an agent personally. They may be of use getting you a tenant but after that their role is just to take your money for doing nothing. And yet as the landlord you will still be the one responsible. Agents are _extremely_ caring people. They very much care about themselves!

If you don't use an agent, you will have the cost of screening the tenants which will be massively lower than the overall cost of using an agent.

Your tenants pay the council tax. You may only have to pay this if you own the property and you did not have tenants in.

In general, whatever you do, read up on YOUR obligations as a landlord. It is really straightforward, but only then can you ensure you have your ducks in a row before you let.

Good luck.

heavykarma

Apart from all the things listed above,you need to have money in reserve to cover voids,especially if you have a mortgage.Don't ever get involved in paying council tax or utilities for tenants.