How much does it really cost to let your property in Crawley?
Buy to let is booming, with cash in the bank producing little interest more and more people are turning to buying there first investment property. We are certainly experiencing this in Crawley, which is considered a prime location for renting property with Gatwick Airport on the door step.
With a recent forecast of one in five households in the UK renting a property by 2016, there is going to be an estimated shortage of 1.1million rental homes.
Many landlords embarking on their first investment purchase are oblivious to the set up costs involved and are often blinkered by low advertised management fees from letting agents that come with many catches. At Inspire Estate Agents we believe in total transparency when it comes to fees and would advise that if an advertised deal seems to good to be true then it usually is!
Mark Denton Lettings Manager of Inspire Estate Agents commented, we have had landlords coming to us where they have been charged for property inspections, which of course should be a standard part of the management fee not an additional hidden cost. He also warned that you should check if your managing agent offers a cheap management fee for the first 6 months then tie you into a much higher rate for the term of their contract. Finally Mark advises that you should always ask you lettings agent if they charge their management fee monthly or if they take all their management fees upfront for the term of their contract, leaving landlords with no rental income to pay their mortgage payments.
When letting a property for the first time you should be aware of potential charges you could occur in the first month, (examples below based on a 3 bedroom unfurnished property)
1) Preparation of a tenant agreement £95 + vat
2) Security Deposit Registration £25 + vat
3) Check In Fee/Check Out Fee £80 + vat
4) Inventory & Schedule of condition £100 + vat
Lettings agents set up costs will usually run into a few hundred pounds, well at Inspire we are delighted to offer a spring promotion whereby for a single fee of £99.00+vat all of the above are included, leaving landlords quid's in. So if you are thinking of letting, are looking for great value set up fees with no strings attached, and want a regulated agent then contact Mark Denton of Inspire Estate Agents now on 01293 582335.