According to the latest research from LV= General Insurance, almost £4.7 billion a year is being spent by UK landlords on their rental properties, which is an average of £3,134 each.
The research revealed that for many, the time and cost involved in managing their properties has become so great that over 600,000 (41%) are actively considering selling up.
The costs include renovations and refurbishments (£370), replacing or repairing the boiler (£370), fixing structural damage (£313), decorating (£265) and garden maintenance (£203).
Furthermore, two-thirds of landlords state the carpets in their property are most likely to be damaged by tenants (66%), with walls (45%), white goods (27%) and doors (24%) also on top of the list. Landlords will have to spend most their money on replacing or repairing due to the actions of their tenants, these damages include repairing flooring (£322), white goods (£298), or other items (£256), cleaning at the end of a tenancy (£178) and removing items that have been left behind by previous tenants (£149).
Despite this, the accidental damage costs could be covered by landlord insurance, however latest research also revealed that 13% currently don’t have the right insurance in place, therefore puts them at risk of losing out on up to £3,000 a year.
Across the UK, the cost of becoming a landlord will vary between regions. The area which has spent the most money on repairing damage made by tenants is the South West, spending an average of £3,461 on repairs. On the other hand, landlords in the North West on average spend the least on repairing the damage, almost £1,000 less (£2,738).
Moreover, damages to the property and consecutive repairs can impact the relationship between landlord and tenant and a third (34%) of landlords state that bad tenants are the most difficult aspect of the job. However, almost half (46%) have never experienced a tenant dispute, while a quarter (23%) have disputes at least once a year, with 6% having them at least once a month. The most common causes for tenant disputes are delayed rent (43%), damage to property (41%), cleanliness (33%), disputes over bills or deposits) (10%), pets (9%) and sub-letting (7%).
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
If you would like to book an appointment then please get in touch and we can arrange a suitable time to discuss further. We can arrange appointments at a place and time suitable to you, we can discuss your options over the phone or if you prefer email, then this is fine with us.