There are many costs to take into consideration before you decide to become an investment landlord.
Every investor's aim should be to create a realistic, and profitable, yield so you need to give consideration to a number of obvious and hidden costs.
The biggest outlay will be the intial price of the property including all the associated costs - solicitor's fees, stamp duty, mortgage arrangement fees and survey costs. It might be best to seek professional, expert advice and an experienced property agent should be able to answer your queries. Depending on the type of letting are you are considering, you might also need to consider the costs of adapting the property - Houses of Multiple Occupancy require special arrangements for fire exits etc.
When it comes to letting the property you will be well advised to use a letting agent but if you are planning to let the property yourself you will need to advertise, which can be costly in itself. There are a wide variety of ways to advertise including, local press and websites, and costs will vary accordingly. Using a property agent will, however, give you wider coverage and often at less cost as they have regular slots with the local media.
Once you have a potential tenant you will have to consider the costs of credit checks and drawing up the lease (which will need careful consideration in itself).
Ongoing costs to be considered will include insurance, landlord checks and maintenance.
If you would like more information on becoming an investment landlord talk to Annabel or Mike at Barbers Rural.