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Budgeting Guide for South Devon Landlords

Budgeting Guide for South Devon Landlords

In this three-minute read, we outline the costs and expenses landlords encounter when letting a property.

To succeed as a landlord, you need to have a realistic idea about the costs you’ll encounter when letting out a property.

Many people think that being a landlord is child’s play; they assume that once the tenant has the keys, the only thing left to do is collect the rent each month.

But the truth is, letting a property comes with an array of grown-up financial and legal responsibilities. If you’re not on top of your obligations, you could lose money or wind up in court (or both).

Here’s a list of all the costs that are part and parcel of being a landlord in South Devon.

Mortgage repayments

Mortgage repayments are the most significant monthly outgoing for most landlords. If you’re looking for certainty about the size of your monthly repayments, opt for a fixed-term rate.

Insurance costs

Landlord insurance is a condition of most buy-to-let mortgages. You can opt for a general policy (this should cover property liability, buildings insurance, contents, and loss of rent) or one that is more far-reaching (but will have higher premiums).

Maintenance and repairs

All properties require general maintenance from time to time. Landlords must ensure the property is safe (that means keeping up to date with things like gas and electricity safety checks) and in good condition. Set aside funds to cover this and any repairs that may crop up (property experts suggest between 5% and 10% of annual rent).

Service charges and other fees

If your property is in an apartment block, you may need to pay a service charge or ground rent. Leasehold property owners may also have to contribute to the cost of work carried out in communal areas.

Covering vacant periods

Even the most optimistic and diligent landlord should be prepared for a property to be empty for a short period between tenancies. It’s also possible that a tenant could fall behind on the rent. Set aside at least six weeks’ rent to cover yourself.

Tax

The rules around what you can and can’t claim as a landlord have tightened in recent years. To ensure you pay what you should, and claim that to which you’re entitled, do your research and keep all relevant receipts and paperwork.

Finding a tenant and credit checks

Some DIY landlords do these things themselves, but most good landlords leave it to the pros and use an experienced letting agent. The DIY route will save you a few quid upfront – but it could cost you much more in the long run (think of the legal bills if it all goes wrong). A good letting agent will have years of experience at sourcing good tenants, checking references, and spotting trouble in advance.

Property management fees

A letting agent will handle the big and little stuff for you: the paperwork, the people management, the legal checks, the inspections, and disputes. As a landlord, you could do this for yourself. It will save you some money but cost you in terms of time and energy.

Here at Chamberlains, we can take the stress out of managing a rental property, so you can sleep easy at night. Get in touch if you have any questions, we’re here to answer your queries.

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Will You Be Enjoying a Big Bubble or a Little Bublé this Christmas?

Will You Be Enjoying a Big Bubble or a Little Bublé this Christmas?

In this two-minute read, we look at what the Christmas announcements mean to households.

This year has been filled with anguish and anxiety for many of us.

But the news that coming out around successful vaccines and the announcement of the temporary relaxation around social distancing rules over Christmas has cheered up many of us.

And in true Christmas miracle fashion, it’s got the four national governments of the UK to take a united approach.

For five days, people have the option to celebrate the festive period with selected families and friends.

Here is some of the Government’s guidance for England around the rules for 23 to December 27 as reported by the BBC.

  • Up to three households will be allowed to stay together and form a “Christmas bubble.”
  • You can form a different Christmas bubble from the people you live with usually – so you can choose to stay with different people for the five days.
  • You can meet people outside your Christmas bubble. But only outside the home and in line with the rules for the tier in which you are staying. Places you can meet those people include parks, beaches, open countryside, public gardens, allotments and playgrounds
  • Children under 18 years-old whose parents do not live together may be part of both parents’ Christmas bubbles.
  • Existing support bubbles count as one household towards the three-household limit.
  • Students are considered to be part of the household to which they have returned.

According to the BBC, the decision will be based on several factors, including case numbers, the reproduction rate – or R number – and the amount of pressure on local NHS services.

For some families, it will be a difficult choice around who to share Christmas with.

There’s always the option to stay within your established bubble (AKA your immediate family).  This way, you won’t fall out with the in-laws, and you’ll be keeping seriously safe.

So, what will you be doing?

Will you be planning a three-family bubble with all the traditional works?

Or are you going for a lower-key approach, with a smaller turkey and Michael Bublé’s Christmas songs providing the backdrop?

Whatever you plan, we hope you have a safe, memorable, and happy time.

From all at Chamberlains.

PS: Here is the link to the Government’s Advice. (England Only)

https://tinyurl.com/y5czwlkc