More than the mortgage, and the gap is where most first time landlords get caught out.
The predictable ones are insurance, safety certificates, letting agent fees if you use one, ground rent and service charge on a flat, and accountancy. The unpredictable ones are repairs, void periods and the occasional bad month.
A common rule of thumb is to set aside a fixed slice of the rent every month for maintenance and voids rather than treating the whole lot as income. What slice depends on the age and type of the property.
Leave a Reply