How much does it cost to be a landlord?
Becoming a landlord means getting your finances in order. Before you start it’s important to know what your rights and responsibilities will be and how much it is likely to cost you to rent a property.
Of course, haart are on hand to help you with everything you need to get started. We work to support landlords through our online articles, and in-branch advice. Get in touch with your local haart branch for a chat through your options as a landlord and how haart can help you.
Just getting started? See our top tips for landlords
In this article we will outline the basic costs for landlords, all important for you to consider before you start letting out property. Some are mandatory, others may not apply to your particular circumstance, but are still something to be aware of. We have linked to our guides and articles on most of these costs, so be sure to grab a cuppa for some reading time.
Mandatory costs
These are the things you must pay for. Legally you are expected to pay these as a landlord and failure to do so could result in hefty fines.
EPC (Energy Performance Certificate)
An EPC is a legal requirement. It’s an assessment of how energy efficient your property is. Landlords must have a valid certificate before any viewings are booked. An EPC is valid for 10 years, but if you make significant energy efficiency improvements to the property and want it reflected in the report you can renew it sooner than that. An EPC starts at around £40.
Electrical Safety Inspection/Report (England Only)
Since July 2020, landlords in England are legally obligated to obtain an Electrical Installation Condition Report (EICR). The legislation was brought in to achieve national standards for electrical safety. The report must be renewed at least every 5 years. An EICR costs from around £85.
A landlord gas safety check is also a legal requirement, and it must be completed annually. All gas appliances and fittings must be checked by a Gas Safe registered engineer. These cost from around £45 per year.
Being a landlord is like running any business, so there is tax to pay on your income. For most landlords, this will be the same as normal income, so if you’re a basic rate taxpayer, you’ll pay 20%, while higher rate taxpayers pay 40%. The cost will of course vary for this.
CTA: Understanding the tax implications of letting a property
Smoke & Carbon Monoxide alarms
All landlords in England must supply and install smoke and carbon monoxide alarms. The average house will need two smoke alarms (one per floor) and one carbon monoxide alarm. Prices vary depending on the type or brand of alarm you purchase, but you should expect to pay around £30 for a carbon monoxide alarm and £20 for a smoke alarm.
Other costs
These are some costs that may or may not apply to you as a landlord
These will differ depending on the agent, but we’d love to show you how haart can help, so contact us at your local branch.
Some landlords will require a landlord’s license, but it does depend on the location of your property. Some local authorities require landlords to have a licence, some don’t. The best way to find out is by contacting your local council.
No matter how prepared your property is, or reliable your tenants are, you’ll want to be covered for any eventuality. You certainly don’t want to scrimp on the coverage you receive, but we listed our top tips, designed to help you get the best insurance possible without breaking the bank in the linked guide above.
This cost will vary depending on the method you use e.g. online letting agent Vs High-street letting agent. You’ll want to avoid empty/void periods during the transition between old tenants vacating and new tenants moving in, so make sure you’re always getting your property noticed (we can help you there).
This is all about GDPR (General Data Protection Regulation). Under the Data Protection Act individuals and organisations that process personal information need to register with the Information Commissioner’s Office (ICO).
If you currently or retrospectively store, use or delete tenants personal information (their name, email, or mobile number etc.) on any electrical device (computer, phone or tablet), which is almost all landlords these days, then you should be registered with the ICO. Fines for breaking the rules are substantial, with one estate agent being fined £80k, so it’s worth signing up which costs only £40 per year.
Let haart help
At haart, we help landlords manage their property portfolios. Taking the stress out of payments, tenancy agreements, and anything else that may come up, our property management services are a fantastic choice if you’re a busy landlord. From licensing schemes to tenant referencing, we can help.
Get in touch with your local branch and see how we’re on a mission to get your property let.