Hidden charges could trap the inexperienced Landlords

Home repairs service Rightio has provided a useful checklist of the hidden costs of being a landlord.

Being a landlord can be rewarding, but it’s also a lot of hard work and doesn’t come cheap. For people looking to get into the rental property market, there are a lot of mandatory and recommended costs that you may not have been considered before, including energy safety checks and even licensing in certain areas.

If you’re considering getting into the property market and being a landlord, there are a lot of expenses to consider. Mortgage and repair costs are well known, but what else should you expect?

Here are some of the less-known costs of being a landlord:

Gas safety – With 77% of homes still using gas for heating in 2021, most landlords will have a number of gas safety regulations to meet. You’re obligated to carry out an annual gas safety check on each property you’re responsible for, and this must be carried out by a Gas Safe engineer – so you can’t cut costs by doing it yourself.

Energy efficiency and electrical safety – Electrical safety is also a mandatory requirement for landlords in England and is one of the most recent pieces of legislation you’re required to abide by.

All landlords must also provide energy efficiency ratings on their properties to tenants. Energy efficiency can be really important to prospective tenants and must be available before you arrange any viewings.

Landlord licences – Some property owners will require a landlord licence. Because this only applies in certain situations, this can catch out a lot of new landlords or those expanding their portfolio.

Landlords who rent out houses in multiple occupation (HMOs) must acquire a licence to do so.

Selective licensing is the one that trips up a lot of inexperienced landlords. Currently, over 70 councils in England can apply selective licensing, which was brought in to improve the standards of landlords in certain areas.

Landlord insurance – While this isn’t a mandatory cost, it’s one that may go under the radar for new landlords. Landlord insurance can cover a number of expenses associated with renting out your properties and will save you money in the long run.

On average, landlord insurance costs £217 a year– a drop in the ocean compared to the money it could save you and all the other costs associated with being a landlord!

If you are looking for a mortgage to buy your first property or your next investment property, we can help. We have access to lenders across the UK and can help find the right product.

Call 01625 548248 or email enquires@mortgagesavers.co.uk

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