Aside from your monthly mortgage payments, there are many ongoing costs associated with being a landlord.
- Letting agent's fee for finding and vetting tenants, as well as any additional costs for providing a full property management service
- Legal insurance to cover costs in the event of having to evict a tenant
- Building and contents insurance for items provided as part of the rental agreement
- Furnishing and decorating costs for furniture required as part of the rental agreement
- Gas/electrical appliance maintenance costs to ensure they comply with regulations such as health and safety
- Ongoing maintenance costs such as painting, decorating, plumbing etc
- Ground rent or service charges if the property is leasehold
These costs can arise unexpectedly and you must have provisions in place to cover them.
In addition, you need to consider how you will cover mortgage payments should the property lie vacant for a period time.
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