Pads For Students - The Location For Student House Rentals

Blog

Biggest Landlord Costs and How to Review Them

In a recent survey, around 1/3 of UK landlords said they were seeking ways of cutting costs for the last tax year. With new taxes and legislation reducing profit margins, it is towards costing that property owners now turn before considering increasing rent in a competitive market. But what are the biggest costs and how might you be able to cut back?

 

Maintenance

On average, property owners spend around £3,500 every year on costs. The biggest single cost is maintenance. It covers a broad spectrum – everything from boiler servicing to repairing doors and replacing locks, and new coats of paint. Maintenance is general wear and tear and your basic safety requirements. You could cut costs here by carrying out some of the maintenance yourself (new lick of paint, laying new carpets). However, gas safety and other certifications must be done by the professionally licensed.

 

Upgrades and Improvements

This differs from maintenance in that the former is about repairs. This is about making the property more attractive to potential tenants. This is the second largest cost and one that landlords of student properties must remain mindful about. Each new year brings new student requirements. What was optional extra five years ago is now expectation. A new kitchen, for example, a patio with barbecue, reinforced doors for security. The best way to reduce costs on these is to seek high quality “upcycled” or “preloved” furniture and amenities rather than buying brand new.

 

Mortgage Interest

The type of mortgage that you opt for when financing the property can mean the difference between a healthy and narrow profit, or between profit and loss. It takes good research at the time of deciding which provider terms to choose. Unfortunately, good foresight is not always possible. Variable mortgage rates can change but fixed rates mean you’ll be paying over the odds when the interest rates are low. To keep on top of the cost, research your options when considering a new provider for your existing mortgage.

 

Letting Agents

While letting agent fees are going to disappear on 1st June, there are other costs associated with using an agent to rent out your property. For starters, while they cover many aspects of letting and managing your property, this will come at a cost. But many property owners get by perfectly well by not using letting agents to rent out their properties. By carrying out maintenance yourself, marketing, maintenance checks and much more, you’re cutting out the middleman and improving profitability.

Instead of using a lettings agent, why not list your property on the Pads for Students website? It’s a much more cost-effective way of securing student tenants for your property, reaching out to thousands of eager students each year.