Landlord Example Figures
Based on a recent 36 month agreement on a two bed flat in Hackney
PROPERTY CONDITION:
Presentation:
Average/tired. In need of decoration and professional clean. No furniture present.
Furnishings:
Fridge freezer and washing machine supplied by LL.
Market Rent:
£1700 per calendar month.
GROSS INCOME:
36 months rent:
£61,200
PRE-TENANCY EXPENDITURES:
Full Decoration:
£2160.00 (£1800 + VAT)
Furniture Requirements:
£1800
Professional Clean:
£180
FIXED EXPENDITURES:
Agent's Fee:
£11,016
Gas Safety Certificates:
£255.00 (x3)
ECIR
£260
Check in / Inventory fee
£220
Check out Inspection
£150
Based on 15% + VAT (Full management for three years)
£85 per annum
LIKELY EXPENDITURES:
(Statistics from ‘The Negotiator’ magazine)
Maintenance:
£3182.40
Void Period:
£3530.76
5.2% of income over 36 months.
Based on 3 weeks void per annum.
NET PROFIT & LOSS:
36 months income:
£61,200
Full Decoration:
Agent Fee:
£11,016
Professional pre-tenancy clean:
£180
Gas Safety Certificate:
£225
ECIR:
£260
Check in / Inventory fee:
£220
Check out Inspection:
£150
Likely maintenance fees:
£3182.40
Void Period:
£3530.76
Total Gross Income:
£61,200
Total Expenditure:
£20,924.16
TOTAL NET INCOME:
£40,275.84
TOTAL NET INCOME:
£13,425.28
TOTAL NET INCOME:
£1118.77
Over three years.
Nine weeks over three years.
Over three years.
Over three years.
Over three years.
Per annum.
Per calendar month.
Over a three year period, the above flat will earn an average net income to the landlord a sum of £1118.77 per calendar month. However, during this term the landlord will receive numerous calls regarding fixed issues and many probable issues such as rent being late, rent not being paid, a tap not working, a boiler has broken down, bed frame has collapsed, dispute on how property has been handed back, the list goes on.
Above we have touched on the expenses, but more importantly, if you are at a family gathering or on holiday, the last thing you will want is an email from a tenant or agent stating the hot water and heating has stopped and that you need to send/pay for an engineer. The whole point of an investment is passive income, zero stress. Sadhana Property takes on all these burdens.
If you have any queries, please contact us.