What is the upside of letting property – what can I gain?
Aside from financial considerations becoming a landlord (many private landlords do it as a sideline) can be very rewarding: landlords get a real buzz from owning and letting their properties and they are providing a valuable service to their communities. But make sure you are suited to “Landlording” – not everyone is? Financial gains can be substantial. Total returns (income + capital gains) have been as high as 25% recently and 16% overall returns have been common. Bear in mind that this may not always be the case – the property market goes in up and down cycles. However, successful landlords are able to make good returns in good times and in bad! You should work on an initial yield (income return on outlay) of 6-10%. This should be sufficient to cover your mortgage with something to spare. Doing it yourself and saving agent’s fees will maximise your gains and could mean the difference between a good profit and a loss.
Related Questions
- Do the rights of the public include being able to cross private property to gain access to the public waters?
- What if a property is advertised with a specific letting criteria but nobody who matches the criteria bids?
- Top of page What is the difference between an RLA (Resident Letting Agent) and a Property Manager?
