Before I decided to have a clear out this morning, I had over 200 webpages bookmarked. As I was sifting through the pages I couldn’t fathom why I had bookmarked half the pages that I did. However, on a few occasions, I was reconnected with some nice articles, one of which I’m going to share right now…

I read the article on the Lovemoney website over a year ago. Admittedly, I’m not an avid reader of the website. Albeit, fate connected me with this particular article. It’s nothing amazing or ground breaking, but I liked how such a simple and practical idea was put across. It’s the simple things, innit?

The article is quite long, and I only really liked one section of it (I didn’t dislike the other sections, but this one bit just stood-out), where the author explains the difference between the value of a pound and the value of a percentage, and how we get it wrong.

Let’s say you want a DVD. In the shop down your road it costs £20, but with a short drive into town you’ll have it for £10, saving a massive 50%. So you decide to drive into town.

The next day, you want a new TV. On your street it costs £1,000, and in town it’s £990. At £10 less, that’s just a 1% saving, so this time you don’t drive into town.

Somewhere, you’ve made a mistake. The saving in both cases is £10. So do you want that £10 or don’t you?

Love it. I want that £10! I just needed reminding.

This analogy applies to every consumer (which is all of us). Somewhere along the line we forget the real value of the pound, didn’t we?

I don’t like buying cheap junk, whether it’s for myself, or any of my buy-to-let properties. However, I do like the idea of saving money where it can be saved. I’m pretty sure if we put the value of a pound before the value of a percentage, overtime our balance sheets would look a lot healthier.

This is probably a pointless blog post to most of you, but it’s a nice reminder to myself, so I thought I’d quickly jot it down. However, I hope it reminds at least one of you out there what the real value of a pound is, even when purchasing something as basic as a toilet seat.

Related posts:

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A few weeks ago I put up a link to a free service that allows landlords to market their vacant BTL on the biggest property portals online e.g. Rightmove. Well, here’s another free offer I most recently found…

The other day I came across a company called Discount Letting that is currently offering a Free Tenant Credit Check For Landlords, Worth £15. Just to clarify, it’s ONE Credit Check per landlord.

I spoke to the Directory of the company on the phone, and as it turns out, the offer is entirely legit. All you need to do is provide your name and a few standard contact details, and the free service is yours. I also enquired how long the offer will be standing for, and he assured me that it wouldn’t be less than a year, so you don’t all need to make a rush to take advantage of the offer! Just back up and form an orderly queue, innit.

The actual credit check isn’t too shabby either, this is what you get…

• You’ll receive a pdf credit report on your new tenant in 24 hours.
• Credit score for your tenant.
• Credit score guide advising on acceptability of tenant.
• Electoral roll database search for your tenant.
• Other selected database search for your tenant.
• CCJ (County Court Judgement) report on your tenant.
• Insolvency report on your tenant.
• Undeclared links to addresses not mentioned by your tenant.
• Undeclared aliases not mentioned by your tenant.
• Undeclared associates not mentioned by your tenant.
• Notices served on your tenant.
• Tenant previous history.
• Tenant current address match with Royal Mail database
• Neighbourhood definition of tenants’ current address.

You can Sign Up here.

If anyone decides to use the free service, please let me know how good/shit/efficient it is!

YOU’RE WELCOME :)

Related posts:

List Of Tenant Credit Check Services For Landlords
Do You Have A Useful Service To Offer Landlords? Advertise it for FREE
List Of FREE Products For Landlords

I consider forecasting maintenance costs pretty important; it helps give an indication of whether an investment is worth pursuing. Before buying, I always try to work out how much contingency I’d need for maintenance. Obviously, it’s not always an accurate calculation, but the figures can often stack up and fit in line, which is great for forecasting net profit.

As far as I’m concerned, there are a few factors which can help forecast how much annual maintenance costs will be. Here’s how I break it down:

1) Type of tenants

I’ve had tenants in the past that enjoyed putting holes in the wall, draw on the walls and wipe shit on the carpets. They weren’t the cheapest tenants in the world.

Good/sober tenants = lower maintenance costs.

2) Type of property

New build properties generally aren’t as well built as older Victorian houses, so they’re probably more prone to injury.

A lot of these new build properties have plasterboard partition walls, which can fold in half when you take a frustrated swipe at the wall after a bad day.

3) Age of property

Older properties are more likely to suffer from plumbing/electrical faults, unless they’ve been completely refitted.

4) Luck

There’s definitely an element of luck involved. You could have an overall sound property, but some times karma fails to surface.

5) Quality of fittings

If you walk into a property with cheap fittings, it will probably end up costing you. I learnt this the hard way. I had a property that initially came with a shitty boiler, and it kept breaking down as different parts kept failing. I’m sure a lot of you already know boilers aren’t cheap. I’m still waiting for it to completely break down on me.

In hindsight, instead of continually patching up the rusty tin, it would have been better just to replace the entire boiler with a much more reliable model.

6) Custom fittings

A lot of new build properties have been crammed into small areas, consequently lot of custom fittings, such as kitchen units and white goods have been installed. They’re custom because they’re a lot smaller than the standard sizes you’ll find in D.I.Y stores. So when it comes to replacing/repairing these items, it may cost more.

Ways to prevent rocketing maintenance costs

Putting aside the element of bad luck, I try to you can try to minimize maintenance costs by doing the following:

1) Picking the right tenants
2) Getting the appropriate property survey before purchasing a property
3) Getting a qualified plumber/electrician to check the property thoroughly before/after purchasing
4) Use quality fittings as opposed to the cheap and cheerful crap. I know, I know, we all love Ikea.
5) Build relationships with qualified labourers that know what they are doing. Good labourers will provide warranty for the work they do and the products they use.
6) buy products with warranties, and even pay a little extra to lengthen the period of the warranties

Does anyone bother thinking about maintenance costs before taking action, or is it considered secondary bullshit that is only thought about when something actually needs fixing/replacing?

Related posts:

How Much I’ve Spent On Maintenance Costs Over The Years As A landlord
Financial Costs Of Being A Landlord
Extra Unforeseen Costs Of Buying A House

what kind of maintenance costs landlords have had to pay over the years?

Fortunately, over the last 5 years of maintaining 3-4 properties, I haven’t had to dig too deep to cover maintenance costs (from what I can remember). And in most cases, where I have paid out, I’ve managed to learn ways to reduce the risks, meaning I avoid (or at least try to) paying out for the same costs.

1] Painting

I had long term tenants for 4 years, and after they left, the entire property (2 bedroom house) needed a compelte repaint. I wasn’t hacked off because after 4 years, what was I to expect? I painted the entire house myself, so labour costs were avoided. The paint and tools cost me about £80.

2] Replacing front door

My ex-savage tenant managed to smash the front door in half. This was when I first realised how extortionate and expensive front doors are (who fucking knew?). You can read more about that awful experience here: I’ve Fallen Out With My Ex-Tenant Over Her Security Deposit

Unfortunately, I didn’t have an Inventory Form in place, otherwise I would have been able to shake the pennies out of my tenant to cover the costs. But I managed to squeeze about a £100 out of her. I ended up paying £150 out of my own pocket. Ouch.

3] Replacing garden fence

Stupid Mother Nature knocked down part of the garden fence in the back garden. It cost £50 to replace. I now know how it feels to be a victim of an earthquake/volcano eruption. It feels HORRIBLE, for those wondering.

4] Replacing carpet

When my long-term tenant left, it became apparent that she and her children had a fetish for shitting and pissing on carpets. There were odd looking stains scattered around everywhere.

Rather than putting my new tenants through the discomfort of stepping onto questionable stains, I had the bedrooms refitted with new carpet. That cost about £120.

5] Plumbing & Heating

This has probably been my biggest expenditure over the years. It turns out that one of my properties was fitted with a shitty boiler. Consequently, to date, it’s cost me £600 to maintain. At first the Printed Circuit Board (PCB) needed replacing, and then a valve needed replacing. I have no idea what any of those things do, I just know I paid out of my arse for them, and it hurt. A lot.

6] Electrical Fault

I can’t remember what, why or when, but at one point the electrics failed in one of my properties. Something or another needed replacing, and it cost me £120.

7] Gas Safety Certificate

A Gas Safety Certificate is required to be renewed annually by law, so it’s not something I can avoid, but it is part of maintaining a BTL. It costs me about £45 per property per year. I’d say I’ve spent about £500 in total.

8] Other stuff

Other small issues over the years have involved poly filling holes in walls, refitting kitchen units, replacing doorknobs, Mr Muscle sink unblocker (NO JOKE), and replacing a doorbell. I estimate I spent about £70 over 4-5 years on “other stuff”

The Total

Total costs: £1,640. Over the period of 4-5 years, I don’t think that’s bad at all. I’ve definitely been a lucky sausage.

I may have missed a few maintenance costs out, but that’s all I can remember for now. Landlords generally remember the big financial hits, because they weep over that shit for years- I’m no different. So I’m pretty confident I covered the main costs.

Conclusion

This is probably a good reminder to all new and prospective-landlords that maintenance costs do exist, and they are very much part of the costs of being a landlord. Alas, it’s not all about a one way money train (common misconception). As mentioned, I’ve been pretty fortunate so far, but I’ve seen other landlords pay out thousands on a yearly basis, which cuts deep into profits.

How much have you paid out?

How much do you pay out yearly or have you paid out in total for maintenance costs? Also, what’s been, or consistently is, your biggest expenditure when maintaining? I’d love to hear your stats, people!

Related posts:

Minimizing Landlord Maintenance Costs
Financial Costs Of Being A Landlord
Extra Unforeseen Costs Of Buying A House

Free Tenant Credit Check Service

• Details on how to get Free Tenant Credit Check Service For Landlords

Free Tenancy Agreements

• Tenancy Agreement by Letting Expert
• Tenancy Agreement by Tenant Docs
• Tenancy Agreement by Property Hawk
• Tenancy Agreement by Ahuja
• Tenancy Agreement by Smart Property Manager

Free Property Inventory Form

• Here’s the Property Inventory Form I use
• Inventory Software for Landlords by PropertyHawk

Free Marketing

• A List Of Free Websites Where Landlords Can Advertise Their BTL

Free Landlord Software

• A list of free landlord Management Software

Free Landlord Association

• Landlord Expert

Free Tenancy Deposit Scheme

• The Deposit Protection Service

Free Communities

• Property Investment Project Forums
• Landlord Zone Forums
• Landlord Forum

Free Legal Advice

• Citizens Advice

Any suggestions?

If you know of anything else which is FREE and worthy of being in this list, let me know! Thanks in advance, people!

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If at any point your BTL property is going to be empty, for whatever reason, I strongly advise you to notify your local council tax office and inform them so you’re entitled to council tax exemption. Otherwise you’ll unnecessarily end up paying council tax on an empty property.

I made the mistake a few years ago of failing to inform my local council tax office when having an empty BTL. To be honest, I didn’t really think anything of the council tax, I was just waiting for the new tenants to move in and register their new residential details.

A month down the line, I received a bill for about £50, to cover the 2 week period where the property remained empty.

Here’s a full list of ways you can be exempted from property council tax:

• Class A: New or requiring/undergoing structural alteration or major repair and for up to six months after completion. This is only limited to one year.
• Class B: Owned by a charity (exempt for up to six months).
• Class C: Unfurnished (exempt for up to six months)
• Class D: the occupier has gone into prison
• Class E: the occupier is now being permanently cared for in hospital
• Class I: the occupier is now in a nursing home or care home.
• Class F: Waiting for probate or letters of administration to be granted and
• Class FB: for up to six months after
• Class G: Empty because occupation is forbidden by law
• Class H: Waiting to be occupied by a minister of religion
• Class J: Left empty by someone who has moved to provide personal care to another person
• Class K: Empty but owned and last used by a student
• Class L: repossessed
• Class Q: The responsibility of a bankrupt’s trustee
• Class R: Vacant domestic caravan plots and houseboat moorings
• Class T: Granny annexes etc – separate letting not allowed by planning control

My property falls under “Class C”- unfurnished property. However, I’m not sure how the council know whether the property is furnished or not? Mine actually is unfurnished, but the council never asked me either way.

You’re also exempt if if your property is occupied only by:

• Class N: Full-time students (and certain non-UK spouses/dependants)
• Class O: Armed forces’ barracks and married quarters. Their occupants will contribute to the cost of local services through a special arrangement.
• Class S: Persons under 18 years of age
• Class U: Persons who are severely mentally impaired or live with a student(s)
• Class V: Diplomats and members of certain international bodies (including their non-UK spouses)
• Class W: Certain dependent relatives in a separate dwelling forming part of a larger property (eg granny annexes)

Contacting Your Local Council Tax Office

In order to get your property exempt from council tax, you need to contact your local Council Tax Office. Some councils can arrange the exemption over the phone, others will require you to fill in a form, which they will post to you.

To find your local Council Tax Office contact details, just Google something like “[enter your town] council tax office”. That’s how I got the details for my local tax office anyways.

I just wanted to jot this down incase someone happens to find it useful.

Related posts:

Tips For Landlords With Empty Properties Between Tenants
The Council Are So Shit To Landlords With Problem DSS Tenants (Part 2)
Which Council Tax Band Is My House In?

As I was showing one couple around the house, they said they liked the property, but was hesitant to commit because of the outdated style. They specifically mentioned the shit-stained kitchen units, the dull walls and the horrid coffee stained carpet located in the master bedroom. All features which I knew were dragging the property down.

Knowing the work needed to be done, and knowing that ignoring the work would result in a struggle to pull in the punters, my quick-wit (ha) lead me to put a deal on the table. I proposed that I’ll buy new paint, carpet and kitchen unit doors of their choice (as long as they’re neutral colours and I accept their taste), if they agree to do the labour. In return for their hardwork I’ll lower the rent by £30 per month. That’s £360 they’ll be saving annually. They seemed pretty cool with the idea. And I’m sure a lot of other landlords/tenants would snap at the opportunity.

Advantages for Landlord

• I don’t need to get in labourers to do the work, which would cost me a lot more than reducing rent by £30 per month.
• If I were to get decorators in now (or do it myself), I would have to keep the property empty for at least another week. That would cost me even more money. By doing it my way, tenants move in straight away, and decorating can begin when they’re ready.

Advantages for Tenants

• They’ll save money
• They’ll live in a freshly decorated property
• They’ll get to provide input on the decoration styling, so they’ll live in a property they’ll get to enjoy

Outlined Rules

There were a few outlined rules that needed to be agreed, which were as follows:

• Work needs to be completed to a high standard. If not, the work will need to be redone at the tenant’s expense. I’ll be moderating.
• I will provide a strict definition of “high quality” and will be moderating at every step, so there’s no confusion.
• There will be a set budget. This is a business move, nothing else.

I must confess though, I probably won’t commit to this deal because I’ve found another potential tenant that is willing to pay more than the asking price, and is willing to pay 3 months upfront, and pay for the 2 weeks that i’ll need to revamp the property. The guy is probably a drug dealer (even though he told me he’s a professional), but as long as rent is paid…

Just to clarify, I will be checking references from previous landlords and employers. I ain’t no fool, fool!

Even though I won’t be commiting to the deal, I thought I’d just write this situation up because I think it’s still a pretty good idea if any Landlord has a property that needs work.

Anyhow, I’ve decided to look under my thick layer bondage gear to get my work overalls out and do the work myself. It’s going to be pretty tough because I’ll have to juggle the labour around my nine-to-five and my ever so demanding social life! But it should be a nice D.I.Y learning curve.

I’d be interesting to know if any Landlord or Tenant would ever strike up a deal like this. Anyone? Someone?

Related posts:

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Increasing Your Tenants Rent
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RING, RING…*[insert tenant name] calling*…

As I prepare myself to embrace the whimper and uttering of bad news, I softly greet my tenant. I sound polite, but slightly under the surface I’m anticipating a blow. It’s quick and painful, there’s no fucking around: She says…

The oven’s broke, I think the elements gone

I instantly feel my pockets getting lighter, and my winter getting colder. I don’t blame my tenant, I don’t blame anyone, I’m just not too keen on the hassle of rectification. It’s not the money, it’s the level of effort which I’ll have to exert on something, which frankly, felt so insignificant in my life- an instrument to heat slaughtered animals. Not my slaughtered animals, someone else’s.

I assure my tenant I’ll get the issue resolved quickly as humanly possible. I’m actually quite good like that, if something needs fixing, I won’t leave my tenants waiting.

I shuffle through a pile of my unorganised business cards- I’m sure I have an oven and appliance vendor in there somewhere! BINGO…”Solo Appliances”. I call for a quote,

Hey guy, I have a Neff oven which needs a new element. How much green are we talking?

That will cost £93, which includes labour and VAT

I was waiting for the guy to break into a chuckle and confess to playing a mean joke on me. As the silence got longer, I realised this was no joke, and the guy actually was a shameless shit-for-brains ripoff merchant. I then got flash backs from a previous week, when i saw new Ovens for sale in Currys for £120. Something didn’t quite add up. I told the guy I’d call him back to let him know what I decide to do. Of course, I already knew that he’d be lucky if he ever got to hear my angelic voice again, unless it was to inform him of how ridiculously overpriced he is.

Unsatisfied with the quote, I jumped onto Google and did my own research. It turns out that the average Neff element costs £20 from the Element man. Consequently, the guy from Solo wanted at least £70 for labour; to fit a basic element, which I’m sure takes a few minutes to install and requires minimal skill.

While I was already on the Google train, I decided to search for alternative local oven men. I found a company called ACS Appliances, and decided to try the hustle on them. They quoted me £40. Less than half price than my initial quote. That was a done deal.

The engineer was sent ’round to do his thing. After the operation I was expecting a call from my tenant to confirm the process went smoothly. Unfortunately, I’m me, and when you’re me, nothing runs like clockwork. I received the call OK, but it carried the weight of more bad news. Not only had the element passed it’s expire date, but so had another vital organ, which was imperative to the heating process. To cut a long story short, I needed a new oven.

The oven guy didn’t replace the element, but he did charge a £7.50 call out charge, which I thought was marginally fair.

That same day, straight after work, on the way home from work I popped into Currys to purchase a basic stainless steel oven, which set me back £160. There were cheaper models, but they looked ridiculously bad. So bad that I wouldn’t even want my worst enemy to home one of those monstrosities. As I went to pay at the checkout, I was hit with the usual formalities; a greasy pimple faced rat tried to sell me his cheese, insurance. The rat squeaked,

£20 for 3 years cover- if anything goes wrong with the product we’ll come out and fix it with in 2 days, otherwise we’ll replace it.

I’m not usually one to listen to those ridiculous offers because they’re usually all commission based pitches. However, because it was a mere £20 and the oven was for a tenant, I thought what the heck! The insurance policy could end up saving me money in the future!

The next job in this antagonising saga was to get an electrician to install the darned thing. I called our usual electrician (the guy my family has used for years), I asked him for a quote to install a oven. Without hesitation, he pulled out the figure of £90 from somewhere. I’m not sure where he dislodged that figure from, but I could take a wild guess. It felt like groundhog day. Is everyone a moron that’s trying to rip people off? How can it cost £90 to simply unplug an exiting Oven and replace it with a new Oven? Granted, I’m no Oven guru, but I wasn’t born yesterday either. Surely it’s a case of ‘plug-out, plug-in’…there’s a banana, go do it, monkey!

I decided to try the guy from ACs Appliances, the same chap that went to initially fit the element. He quoted me £25. That sounded much more realistic. Done deal.

It took approximately 4 days to get everything resolved. The whole incident just reminded me how important it is to shop around, and not just stick with the cowboys that come easily and/or first. If I didn’t shop around I would have had to pay more than double the amount I did.

Related posts:

My Tenant Has Agreed To Get The Fuck Out Of My Property
Why The Fuck Do The Council Side With Rent Dodging DSS Criminals?
The Labour Behind Tenancy Renewals

In this current financial climate everyone is feeling the warn urine falling from above, tainting our lives; every penny is actually starting to make a difference. Perhaps if we all actually assumed that every penny counted in the first place, instead of thinking it was just a figure of speech, we wouldn’t be in this position. Regardless, it is the way it is, and consequently people are willing to stab their Nan’s for a fiver these days. My Nan looks like a water fountain when she drinks fluids, thanks to me.

Here’s a list of ways Landlords can save a few bucks, so you know, you don’t have to stab your Nan.

1. Don’t use a letting agent

One of the biggest expenditures for landlords is using letting agents. I’ve seen letting agents charge as much as 15% for managing a property. That’s extortionate. Moreover, I’ve seen letting agents charge 10% for just finding tenants, with annual “renewal fees” on top of that.

I remember when a letting agent wanted £400 just to sort out the tenancy agreement contracts- that involved no management service and they didn’t even find me the tenants! It goes without saying that I told them to go and fuck…a…..tree.

Bottom line, dump the chumps, manage your properties yourself, and save yourself a bucket load.

Useful links:
Finding Tenants Without A Letting Agent
Assured Shorthold Tenancy Agreement

2. Use a Free deposit protection service scheme

When tenancy deposit schemes first came into play the moderating parties were requiring a service fee. It was another added expense which pissed off a lot of landlords.

I advise you not to use the companies that actually charge for the service, but use the only company which offers the service for free. Why is it free? Because they keep all the funds in one account and make profit from the interest.

The Free Deposit Protection Service

Useful links:
Tenancy Deposit Protection Quick Guide

3. Use trusted family and friends for services

A lot of the times the skills we require from people are obtained by those closest around us. Almost everyone knows a handyman, if not directly through blood relatives, then almost certainly through a family or friend. Point being, instead of hiring unknown labour, look closer to home to reap the rewards of “mates rates”.

4. Do as much as you can yourself

If there is anything you can do yourself (e.g. a bit of maintenance), then do it; even if that means rolling up your sleeves and getting a little dirty.

I advise with caution though, only do the jobs you can properly execute. A bodge-job is not an alternative for a job well-done.

5. Consider DSS tenants

I’ve already mentioned that letting agents can charge a ridiculous amount for simply finding tenants; I’ve also provided a link to how you can find tenants without using letting agents. However, if you want ready-to-move in tenants with minimal effort, then obtaining DSS tenants may be the best option for you.

DSS tenants are free, just go to your local council and they can provide you with a DSS tenant that can move in asap.

Useful links:
What Are DSS Tenants?
Tips For Taking On DSS Tenants

6.Shop around for quotes

Always get a few quotes for anything and everything, whether that is for labour or parts. The lazy landlord will often go with the first and easy option, and consequently pay significantly more than necessary.

7. Make sure you’re getting the going rental rate

Everyone is either too scared to buy or can’t afford to buy, so demand for rent is soaring, consequently landlords are taking full advantage and pushing up rates. On that note, make sure you’re marketing your property at the going rate. To find out what the going rates are, look in your local paper, check out Rightmove and check out the windows of your local letting agents.

If you’re charging below the going rate, consider increasing your rates.

Useful links:
Notice Of Rent Increase Form

8. Get a better mortgage deal

If you’re about to come off your fixed rate mortgage and get thrown onto the Standard Variable Rate (SVR), then it’s definitely worth remortgaging before the SVR kicks in. You’ll save a huge chunk of change on a monthly basis.

If you’re on a repayment mortgage, consider switching to an interest-only policy while times are hard. Interest-only policies are more flexible because you can make overpayments. Mortgage payments will also be lower. For example, if you have a two-year fixed mortgage of £150,000 at 5.99%, you would pay £748.75 per month with interest-only payments but £965.54 on a repayment basis. That’s a significant difference.

Useful links:
Interest-only Vs Repayment Mortgages

Related posts:

How Estate Agents Can Save Money
Different Ways Of Paying Interest On A Mortgage
Using A Property Company To Save On Tax

The actual costs of being a Landlord can depend on what is outlined in the tenancy agreement. However, there are a bunch of “mandatory costs” and a whole pile of “costs that landlords may have to cover”

Mandatory costs of a landlord

Tax on rental income
If you’re profiting from your rental income after paying interest on a mortgage- you’re expected to pay Income Tax because it counts towards your “capital gain tax” (CGT). More on that bitter subject over at, Capital Gain Tax (CGT)
Cost: depends on personal circumstances
Frequency: per tax year

Tenancy deposit scheme
If you’re taking a deposit from a tenant, the funds need to be held and moderated by a licensed body
Cost: approximately £100
Renewel: annually / per new tenant

Gas safety Certificate
An inspection of all gas appliances that is provided with in the property by the landlord must be inspected annually by a Council for Registered Gas Installers (CORGI).
Cost: approximately £80
Renewal: annually

Repairs & Maintenance
The landlord is responsible for the structure and exterior of the property; baths, sinks and other sanitary items; heating and hot water installations
Costs: depends on circumstances

Energy efficiency certificate
The certificate will give each building a SAP (Standard Assessment Procedure – out of 100 possible) rating, and this will equate to an energy rating from A to G, similar to those seen on white goods
Costs: approximately £60
Renewal: every 10 years

Landlord Insurance
The landlord MUST have house insurance on the property they are letting. However, the tenant is responsible for their possessions and shouldn’t rely on a landlord’s policy to cover their possessions
Costs: depends on circumstances e.g size of property, location of property..etc.

They’re all the mandatory costs I can think of. Here are the additional costs that may apply, depending on your circumstances.

Costs that may apply for a landlord

Furniture
The landlord will be responsible for replacing or mending any appliances, unless damages were caused directly by the tenant.
Costs: depends on circumstances
Renewal: every time something bloody breaks

Bills
The landlord could choose to pay all bills, including council tax, electricity, gas and water.
Costs: depends on agreement

Letting agents
Now this, this is the biggest expenditure of them all. I think I bitch about the extortionate costs of letting agents at least once a week- apparently this week is no different. Anyways, letting agents are expensive, and usually required by amateur and lazy landlords (no offense, kinda). From my experience, a letting agent can charge 10% of your annual rental income for simply finding you a tenant, and then a renewal fee each year on top of that. For a full-management program, they could charge as much as 15%. It’s a lot of money.
Costs: 10%-15% of annual rental income
Renewal: depends on agreement

If anyone can think of any other costs, please let me know. I’m pretty sure I covered all of them, though, at least for the mandatory part anyways. If not, I’m running an illegal operation over at headquarters.

Related posts:

How Much I’ve Spent On Maintenance Costs Over The Years As A landlord
Minimizing Landlord Maintenance Costs
Extra Unforeseen Costs Of Buying A House