Velvet Letting's for Investors​
LANDLORD DO NOT LOOSE YOUR MONEY
GROSS or NET rental income
Naturally, some landlords tend to focus on only their estimated GROSS rental
income, so we aim to provide an example of the associated costs incurred in
running property.
The example below represents a hypothetical house. These figures are not
intended to mislead, they are merely listed to raise an awareness for a fair
comparison.
The age, location and size of a property and the type of tenants can result in
varying figures, which only the landlord will best understand.
Please apply your own figures, taking into consideration the additional notes
made below the calculation.
(a) Self-managing your property? Have you considered what your time and stress is worth?
(b) Based upon the property being empty for 1 month per year.
(c) This could vary wildly, depending upon your tenants, the property’s age and pure luck!
(d) Based only upon 1 month’s rent for an annual tenant find, divided by 12 months. Does not
include inventories, renewals, deposit registrations, etc.
Other Considerations
• What if just one of your tenants were to go into arrears? Have you
considered the loss of income, the court costs, the stress and your time?
• What happens when you need to refurbish your property?
• Who is going to manage it and what cost or ?me will this involve?
• Is the fluctuation in your net profit difficult and stressful to setimate each
month? Wouldn’t you prefer to know exactly what’s coming into your
bank account each month, without any surprises?
Before & After
