Many property investors choose to buy below market value property with the intention of letting it out. If you want to do the same and are not an experienced property investor it can be difficult to ascertain whether a property will be a viable buy to let option.

Calculating the percentage annual gross rental yield is an important element of evaluating buy to let investments. When doing this minus the annual rental yield and minus it from the purchase price and then multiply by 100. However, this figure does not factor in all the upkeep and maintenance costs involved.

If you really want to make the most of your below market value property it is essential that take in to consideration all of the associated costs from letting a property. This includes management fees. You may not be around to take care of any problems that may arise and need someone to collect the rent. Some agents charge around 10% of the rental income. Nowadays you have to have corgi registered engineer test the boiler every 12 months. Other costs include general maintenance of the property.

Even though buying a below market value property is potentially lucrative, if you are planning on letting the property it is very important you are aware of all the associated costs. If you want to learn more about landlord and tenant obligations you can visit the direct gov website it has lots of useful information about being a landlord.

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Related posts:

1. BMV Properties: Buy To Let BMV’s
2. The UK rental market and Buy to Let
3. Below market value property – How to know which property to buy for renting
4. Buying at Auction
5. Buy to Let Investing