The ups and downs of BTL

With all the other ‘fun’ of April Fool’s day in the UK. I received an email from my property agent to tell me that my current tenant has given notice to leave.  😦

I was hoping that they would renew for at least another 6mths but they have decided to move. So the agent will start marketing the property asap so I can try and get another tenant and not have too much of a void period.

The agent needs to do the inventory and house inspection. Plus the tenant had agreed to make good some of the changes they had made, so it will be interesting to see if they stick to their word or not.

This is where the ‘risk’ of BTL comes in. How long will the void period be? How many months will I have to pick up not just the mortgage payments but the additional ‘add-ons’ of: council tax, utility standing charges and other costs to keep the property in ‘tick-over’. Including checking that the property is OK and that services are switched off and that the void complies with the insurance policy.

I hope that fortune is on my side and a new tenant is found quickly.

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2 thoughts on “The ups and downs of BTL

  1. As you rightly say this is part of being in the BTL game. Just like any business you need to work in order to maintain/increase/secure your revenue stream.

    I’d like to think you wont have to wait months to find a new tenant, unless you’re in a niche location of course. I’ve never had to wait more than 3-4 weeks and that was over the Christmas period when the market typically dies.

    Good luck and remember choosing the right tenant is much more important than choosing the first tenant!

    • Hi UTMT,
      Agree, as a business, it needs to pay its way. I had to payout when I first bought the property as I had to get it fit for rent, so had to pay council tax/utilities/etc for 2 months while I awaited a suitable tenant.. Plenty of other “let” rentals in this area. Had a quick search today and nothing available at the moment in that location – so hope that isnt a bad sign. I have kept some of the rental income as a buffer to cover void periods – so hopefully I have calculated this correctly. It took about 6 weeks to get a tenant last time, I had paperwork to deal with as a first-time landlord. The agent did a good job of vetting them and these tenants have rented for 18months. Hopefully I will find another good tenant, as there are plenty of new jobs in the area and so it could be a good base for anyone who is moving into the area and wants to rent then find somewhere to buy.

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