At Finefair Ltd one of our main goals is to give landlords the very best services. We can handle various things for them, from finding tenants to providing guarantees on their rent. We can even handle management and maintenance. As a result, we are one of the very best companies to work with. We also stand out from the other council leasing companies Enfield has because we can help clients to choose the best scheme for them.
A tricky road ahead
Last year was a very challenging one for landlords because of coronavirus. Unfortunately the early predictions are that 2021 will also be a tricky one. This is because of a combination of COVID-19, things to encourage people to buy rather than rent, changing demands from renters, and fluctuating house prices. In many locations rental rates are also down. There is also the risk of economic struggles making it difficult for people to actually pay their rent.
If you are thinking of investing in a buy to let property in 2021 or currently have a portfolio, it is a good idea to think about the costs you will need to pay. You need to consider them and the amount you can expect to make in rent to see if you will make a profit. Finefair Ltd would love to help. As one of the top council leasing companies Enfield has, we are in a unique position to offer advice and support.
What are the fixed costs?
There are several things that each landlord will have to pay, regardless of the value of the property or the location. This includes:
- The fees for Tenancy Deposit Registration
- Landlord insurance
- EPC certificate
- Gas Safety certificate
- National Insurance
If you add all of these together it can be a total of several hundred pounds per year. Landlords need to keep all of them in mind and have to renew at the right times. This is especially important when it comes to EPCs and gas safety certificates. Many investors will also have to pay to get a landlord licence. This fee can vary depending on the local rules.
Other costs
The fixed costs are not the only ones landlords need to be aware of. In fact, there can be several other ones that are even more costly. For example, they need to consider the amount they will need to pay out for maintenance and repairs. These costs can be even higher depending on what appliances and furnishings you provide in the property. You also need to factor in what you will need to pay for these items when you first purchase them. That could make it very costly for a new landlord.
Profitability
A top landlord insurance provider recently released an annual ranking of areas in the UK where landlords could make the best profits in 2021. This could give investors a better idea of which locations to consider.
According to the data, the best place for renting will be Brighton. This is not surprising as the city took top spot last year too. It is a popular destination for tech businesses and is close enough to London for people who need to travel into the capital occasionally.
At the other end of the list, St Albans could be the worst place to be a landlord. According to the figures, it could actually cost someone several hundred pounds per month. This is because the average rent is far behind the average cost for a mortgage.
In London, the data says the top area will be Barking. Here the average rent is above the price an investor would need to pay for a mortgage. Other areas with good potential for profitability in the capital include Brent, Newham, and Westminster.
Council leasing companies in Enfield
At Finefair Ltd we appreciate how many people look to become a landlord thinking it will be easy and they can just rake in the rent money every month. However, as you can see above there are lots of things to think about. You must consider the costs and how much you can expect to make in rent. In some cases, especially if you pay a huge amount on a mortgage every month, it can be tricky.
You may even want to think about alternatives to being a private landlord. Council leasing can be an interesting option with fewer costs to worry about and guarantees on your rent. Many councils are looking for quality homes they can use so it is always worth considering.
If you are thinking about what options there are for you, why not speak to one of the top council leasing companies Enfield has to offer? We provide great services in the Borough and all over the rest of London. Just get in touch and we will support you.