Redstones Lettings

Understanding costs and returns as a landlord

Particularly if you are a new landlord, getting your head around the costs you will incur and your potential return on the property or properties you rent is essential.

Buy to let investing comes from two income streams – rent and the capital growth of the value of the property increasing.

The property market fluctuates, so it is possible to lose money if property values go down, if your outgoings exceed rental yield or if the property is vacant for any period of time. Being a landlord is a medium to long-term investment.

The costs involved are the costs of purchasing the property for rent including stamp duty, valuation, legal costs and mortgage arrangement fees. If you are renting your property as a business, Class 2 National Insurance is payable and so is income tax, which is payable on rental income minus day to day running costs.

Day to day running costs include landlord’s insurance, letting agent’s fees, mortgage interest, annual safety checks, redecorating and general maintenance.

But how about the profit you will earn? Here’s a useful article about calculating rental yield.

Also, if rent arrears are a worry, our Redstones Platinum Total Care service is invaluable, as it offers guaranteed rent paid on time, every time, whether the tenant has paid or not!

Redstones Hayes Office Image

Redstones ready to dominate London

As part of Redstones expansion strategy, we have focused on our franchise program for quite some time now, encouraging new and highly motivated potential business owners to take advantage of the Redstones brand and service offerings to build their own prosperous property business.

Renowned for its competitiveness and broad range of properties for sale and to let, we’re heading South, with Redstones now ready to dominate London! There are a number of new London based Redstones branches opening in the pipeline, including new branches in Hayes, Iver and Dartford. Plans are also in place for further branches to follow.

Bobby Bansal is our regional manager for the London territory. He has extensive hands-on experience of property management and a broad range of contacts in the field, including many new motivated and experienced individuals who wish to join Redstones as franchisees.

Bobby states, “Redstones is working hard to expand in the London region and we’re received lots of interest from new franchisees. Initially, Redstones will establish 6 offices in the region. As well as the branches that are due to launch soon, plans are in place to launch new offices in Slough, Harrow and Milton Keynes too.”

Watch this space for more news soon, as Redstones continue their exciting expansion efforts in London.