Property upkeep – maintenance costs for the property.
Letting agent’s fees – letting agents charge around 10% of the monthly rent for finding and vetting tenants with an additional cost of around 5% if you require a full management service.
Ground rent / service charges – applicable to leasehold properties.
Legal insurance – to cover costs from evicting tenants in the event of non-payment, very important, as this can be very expensive.
Insurance – building insurance and contents insurance for the items provided as part of the rental agreement.
Furnishings – the purchase of any furniture. If the property is to be let furnished, make sure you are covered for this by your home insurance.
Gas / electrical appliances – cost of maintaining appliances and ensuring they comply with any regulations such as safety tests.
Decorating costs – the property may require work ranging from painting, to a new bathroom suite before it is suitable for letting to tenants.