Landlords are being encouraged to consider service and maintenance charges when working out how much they make form their investments properties, according to The Building Societies Association (BSA).
In a market where rental prices are not rising fast enough to reflect higher house prices, investors should pay more attention to these other costs when considering how successful their investments are, the association has said.
The BSA recommends that investors take out independent valuations to ensure that they do not inflate expectations and project a better return on their property than may otherwise be the case.
Neil Johnson, BSA PR and Policy Manager, said: “The main thing to do is to get an independent idea of what the property is worth and what kind of rental value you would get. Then you do the sums and make sure it makes financial sense.”
“If you are only making ten per cent, you will probably be losing money over the course of the year through service charges and maintenance charges.
“People also need to look at the taxation implications as well, making sure everything has been set up properly from a taxation perspective,” he added.
Older properties are usually susceptible to higher maintenance costs, and landlords looking to reduce the stress of owning multiple properties and cash in on their investment by selling property fast should contact Swift Capital today.
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