Investing
Buy to let: the costs to plan for
A full list of what a rental home costs each year, with a simple way to hold a reserve.
Key takeaways
List regular costs first
Save a share of rent for repairs
Plan for one empty month a year
Take tax advice early
Most rental homes that disappoint do so on costs, not on rent.
1. Regular costs
Management, insurance, service charges and safety checks come every year.
2. Irregular costs
Boilers, roofs and kitchens fail on their own schedule. Set aside a share of the rent each month.
3. Empty months
Plan for one empty month a year, even in a strong area.
4. Tax
Rules differ by country and change often. Ask an adviser before you buy.
This is a demo article with invented figures.
K
Written by
Kofi Mensah
Investment analyst
