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See the real cost of being a landlord. Enter your rental income and every expense to calculate your actual monthly cash flow and annual net profit.
Monthly Costs (adjust to your figures)
Monthly Cash Flow
£136
Annual Rent (adj. for voids)
£10,962
Annual Expenses
£8,928
Tax Bill (estimated)
£407
Annual Net Profit
£1,627
Profit & Loss Summary
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Frequently Asked Questions
What costs does a UK landlord have to pay?
Landlords are responsible for mortgage payments, buildings insurance, landlord liability insurance, maintenance and repairs, letting agent fees (if used), Gas Safety Certificates (annual), Electrical Installation Condition Reports (every 5 years), EPC renewal (every 10 years), and any HMO licensing fees. Void periods with no rental income are also a recurring cost to budget for.
How much should I budget for maintenance on a rental property?
A common rule of thumb is 1% of the property's value per year for maintenance. On a £150,000 property that's £1,500/year — though spending is lumpy: quiet for several years then a boiler replacement or new kitchen costs £3,000-£10,000 in one go. Older stock costs proportionally more to maintain.
What is the difference between gross yield and net yield?
Gross yield is annual rent divided by property value, expressed as a percentage. Net yield deducts all costs (management fees, insurance, maintenance, voids, compliance) before dividing by property value. Net yield gives a realistic picture of actual returns; gross yield is useful only as a quick comparison tool.
Can I deduct landlord costs from my tax bill?
Yes. Allowable expenses include letting agent fees, insurance premiums, repairs and maintenance (not improvements), accountancy fees, and legal costs for tenancy renewals. Mortgage interest is no longer fully deductible for individual landlords due to Section 24 — only a 20% basic rate tax credit is available.
Do I need landlord insurance separate from buildings insurance?
Yes. Standard buildings insurance does not cover landlord-specific risks such as malicious damage by tenants, loss of rent due to an insured event, or legal expenses for eviction proceedings. Dedicated landlord insurance combines buildings cover with these additional protections and is strongly recommended for all rental properties.
Disclaimer: This calculator provides estimates for illustrative purposes only. Results are based on simplified assumptions and should not be relied upon for financial decisions. Actual costs, returns, and outcomes will vary. Always consult a qualified professional before making property or financial decisions.
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The Real Cost of Being a UK Landlord
New landlords consistently underestimate running costs. The two most common errors are forgetting to provision for void periods and maintenance. A well-run rental property typically has costs (excluding mortgage) equal to 30-40% of gross rent once you factor in agent fees, insurance, maintenance, compliance costs, and voids.
Letting Agent Fees
Full management fees range from 10-15% of monthly rent plus VAT. Tenant-find only is typically 8-12% of the first year's rent. On a £1,000/month property, full management costs £1,440-£2,160/year. Self-managing saves this cost but requires time, landlord law knowledge, and the ability to handle maintenance emergencies and problem tenants directly.
Budgeting for Maintenance
Reserve 1% of the property's value per year for maintenance and repairs. On a £150,000 property that's £1,500/year — you won't spend it every year, but you'll spend far more in years when a boiler, roof, or kitchen needs attention. Pre-1960s stock costs more to maintain than newer builds.
Compliance Costs Landlords Forget
Annual Gas Safety Certificate: £60-£120. EICR (every 5 years): £150-£350. EPC (every 10 years): £60-£120. Smoke and CO alarm maintenance, deposit protection fees, Right to Rent checks, HMO licensing where applicable — all legal requirements with fines for non-compliance. Total compliance cost for a single-let: typically £150-300/year.