Are you a landlord? These are the expensive errors you may be making

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Your assist makes all of the distinction. Learn extra Landlords are counting the price of widespread and expensive errors, from ill-judged renovations to mis-timed gross sales, a brand new survey reveals.

A big variety of buy-to-let buyers are regretting choices which have impacted their earnings, in keeping with analysis commissioned by specialist property lender Collectively.

Almost one-fifth (19 per cent) of landlords surveyed admitted overspending on renovations that failed to spice up property values or rental revenue.

An extra 16 per cent lamented promoting properties prematurely or holding onto them for too lengthy, lacking out on probably extra profitable alternatives.

The survey, performed by Censuswide, polled 1,000 landlords throughout the UK, exploring their costliest errors.

A recurring theme was the underestimation of tenant impression, with 18 per cent shocked by the extent of damage and tear inflicted on their properties. This oversight typically led to sudden restore and upkeep prices, catching many landlords off guard.

A further 16 per cent admitted to miscalculating these ongoing bills, additional impacting their backside line.

<img src="https://static.independent.co.uk/2025/01/22/19/newFile-1.jpg" srcset="https://static.independent.co.uk/2025/01/22/19/newFile-1.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/01/22/19/newFile-1.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Nearly one in 10 landlords said allowing their tenants to have pets had been a mistake" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Almost one in 10 landlords stated permitting their tenants to have pets had been a mistake (Getty/iStock) An extra 11 per cent regretted not asking for an even bigger deposit to cowl harm to their property, whereas 9 per cent stated permitting pets had been a expensive mistake.

One in six (16 per cent) had taken on too many properties and the identical proportion had not accounted for the rising value {of professional} companies, equivalent to authorized charges and managing the property.

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Some 15 per cent of landlords had made expensive errors by buying properties within the flawed location, with some saying they'd targeted on areas offering low returns, in keeping with the survey carried out in March.

In the meantime, 15 per cent regretted not making certain they'd a monetary security internet or acceptable insurance coverage prepared which might have helped them cowl sudden prices, whereas 13 per cent stated they'd taken on an excessive amount of debt.

The survey additionally discovered 14 per cent highlighted not investing in power effectivity as a expensive mistake, with the identical proportion additionally saying they'd not anticipated regulatory and tax adjustments.

Ryan Etchells, chief industrial officer at Collectively, stated: “Landlords have to do their analysis on places, property varieties and situation and the rental market in addition to having enough financial savings to cowl put on and tear and to cope with any points equivalent to sudden upkeep prices or void durations.

“A wholesome rental sector is essential to a well-functioning housing market and there are quite a few alternatives for property professionals to attain good yields whereas offering the rental houses which the UK wants.”