Buy to let insurance cost

The costs calculated cover typical letting agent fees, maintenance and insurance. They are typical costs and you can change them to your own personal costs.

For example, if you decide to charge £1,000 per month in rent, which would be £12,000 per year, the calculator will deduct your typical costs of £3,065 to show that you would have £8,395 left. This figure is before any mortgage payments are made.

These figures are based on standard letting and management fees, the ONS Family Spending Report, and average insurance costs from Simply Business.

Agents tend to charge between 10 and 15 per cent of the rent depending on how comprehensive their service is. Our calculator factors in a standard 12.5 per cent charge for finding a tenant and management.

Agents generally promote your property and advertise for tenants.

They will also record an inventory, show prospective tenants around the property, source references and draw up a tenancy agreement.

An agency will collect rent on your behalf, and chase any arrears that are owed. Any problems the tenant has will usually go through the lettings agency first.

It is by no means compulsory to use a lettings agent, but they can take a lot of work off your hands.

The alternatives is to be a DIY landlord and either do everything yourself, or use the services of an online letting agent that may charge a flat fee to list your property on the major portals and offer optional extras.

The degree of maintenance required depends on what has been set down in the tenancy agreement, but by law you will be required to keep the property itself in good repair.

This includes maintaining the drains, gutters and pipes, and boiler and as an extension of that the supply of hot water, gas, electricity and heating.

However, you will not be responsible for maintaining anything the tenant has brought with them to the property, or replacing anything they have damaged, for example a broken window.

Keeping on top of maintenance is vital to ensure your property remains in good condition and your tenants are happy.

Buildings insurance is an essential for any homeowner. It typically covers the structure of your building against events such as fire, floods and storms and natural disasters.

Most mortgage companies will insist on proof of buildings insurance.

Contents insurance would cover any of your belongings in your property, for example, if you let it furnished.

The cost of maintaining appliances depends on what was stated in the tenancy agreement, but you are typically responsible for repairing or replacing appliances that you supply as a landlord.

All electrical equipment provided by you must be kept safe and in good working order - and replaced if necessary.

It is also a legal requirement that landlords have an engineer complete a gas safety check every year on all the gas fittings, appliances and flues within the property. These appliances are the landlord's responsibility to maintain and keep safe.

Stacking up: Buying to let can be more expensive than you think, so be aware of the costs involved

One cost new landlords sometimes forget about is void period s- that is, the property standing empty. Unless you have bought the property outright, you will have to pay the mortgage regardless or whether or not there are tenants providing you with rental income, and you will still have utility bills to consider.

Landlords are advised to allow for at least one void month per year. We have factored this into the calculator.

Five big mistakes you can make as a buy-to-let landlord

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