Well, my new tenant is denting my rental income by reporting loads of things wrong with the property and wanting them fixed. I’ve had nearly £1,000 worth of expenses on the BTL this month with maintenance costs in addition to annual insurance and gas certificate renewals. This goes to illustrate that BTL isn’t straightforward.
Since I started out with this BTL “Project” I have cumulatively made 3% from the original investment – excluding tax considerations. I do wonder if this is really a good way of investing and the budget changes may make this a losing game. It sounds as though it will only work for those who own the property outright. Everyone says that BTL is for the long-term, I did speak to a few landlords before I took the plunge who gave me the highlights and lowlights of being a landlord. I have planned to stick this out until the end of the mortgage fixed interest term and then review whether I continue to be a landlord or sell up. Interest rates, new tax rules and financial situation at the time will only tell.
I guess I feel a little frustrated as I can see these expenses on this month’s budget sheet and although it is coming out of my rental account it does show how unforeseen expenses can knock your spending when you are trying to live off a passive income stream.