Landlord Advice - Apartments in Leicestershire

When considering an apartment as an investment property the highest cost is likely to be your Mortgage, however, we would also suggest it is worth for you to consider the following:

• Insurance Premiums – usually between 2% and 3% of the rental income, or between 4% to 5% for furnished properties.
• Replacement of furnishings, fixtures and fittings – allow approximately 10% each year and be prepared to re-decorate every few years.
• Maintenance - the type, age and condition of the property will obviously have an effect on repairs.
• Ground rent and service charges – most apartments are Leasehold.
• Void periods - budget for one month each year when the property may become empty between tenancies.
• Letting agency fees – James Sellicks Lettings offers an award-winning inclusive management service with a 100% customer satisfaction rating.

 Once you have deducted all these costs from the rent, you will end up with your net expected rental income. If you divide this into the value of the property, including all the costs associated with buying it, you will have the 'net rental yield'. For example, if net rental income is £10,000 and the property cost £200,000, the net rental yield is simply £10,000 divided by £200,000 which equals 0.05 or 5%.

Talk to our Lettings Department for more advice on 0116 285 1600