Analysis by professional cash buyer and portfolio landlord, Landlord Buyer (part of Open Property Group), has revealed what costs make up most rental property expenses.
Using the Hammock software, the business analysed its portfolio of over 140 properties, which are spread across England and Wales, to establish what percentage of the gross rent is received as the net rent (gross profit) once you allow for typical running expenses but excluding financing costs.
The findings act as a stark reminder to landlords that the management aspects of a rental portfolio alone can make up a large chunk of the monthly rental income, eating into profits, and all on top of additional finance and miscellaneous costs.