There is a booming rental market in Peterborough at the moment. But if you want to succeed in Peterborough’s booking rental market you need to have a realistic idea of the costs and fees that you need to budget for when renting out your property.
Letting your property in Peterborough isn’t child’s play, as some people may think. Instead, there are a wide array of financial and legal responsibilities that you gain when you become a landlord. There are lots of obligations, regulations and maintenance responsibilities that you need to stay on top of. If you don’t, then you could end up paying large fees, going to court, or worse!
Below we have listed all the costs and fees involved in being a landlord in Peterborough. If you think there is a lot more involved in being a landlord that you expected, don’t let it put you off. It might just be worth having a professional property management company in Peterborough look after your property for you.
- Mortgage Repayments
The most significant outgoing payment for most landlords is the mortgage repayments. A great way of gaining security around the size of your mortgage repayments is to opt for a fixed-term rate mortgage for your property.
If you have a buy-to-let mortgage you will need landlord insurance in most cases. You can opt for a general policy. The general policy will cover the property liability, buildings insurance, contents, loss of rent and so on. There are more far-reaching insurance options, but these will have high premiums.
- Maintenance & Repairs
Your property will require general maintenance from wear and tear at times. However, there are also other regulations with a rented property. For example, gas and electricity safety checks are a legal requirement. We recommend that you put aside 5%-10% of the annual rent as this will be needed for repairs that might crop up.
- Void Periods
Even the most optimistic landlord needs to prepare for a property to be empty for some time. This may just be the time in-between tenancies for a few weeks or months. There is also the chance that a tenant could fall behind on their rent. It’s a good idea to set aside at least 6 weeks rent to cover yourself for these void periods.
The rules of what you can and can’t claim as a landlord in Peterborough have changed over the years. Make sure you pay the tax that you should and claim what you are entitled too. It’s important that you do your research and always keep your receipts of items purchased or works done on the property.
If you choose to use a property management company in Peterborough to help handle the letting of your property, give us a call. We will charge you a fee for the work we do, but this will take away all the paperwork, legal checks, people management, inspection and dispute stress for you.
Looking for a Peterborough based property management company that you can trust? Give us a call or check out our testimonials from our happy landlords online.