More than one in five, some 21% of UK landlords have to wait longer than four months before signing up their first tenants, according to new research into buy to let purchasing.
But 53% of landlords have paying tenants within a couple of months of completing their first buy to let but for other delays can pile the pressure on their finances, says the report from the Nottingham Building Society.
It points out that the costs involved in setting up as a landlord on top of mortgage finance are not trivial and the average landlord has to pay out £2,000 on their first property before they find tenants although 35% manage to spend less than £1,000.
The study also shows that around 62% of those questioned said they had to redecorate or refurbish properties before letting them out with 28% saying redecorating work took two weeks or more.
However, once tenants are in the pressure eases substantially and on average in the past year landlords only had one month where they had no tenants while 45% of those questioned say they’ve had no void months in the past year.
The research also found that the average landlord spends around £700 a year per property on maintenance but 37% claim to spend less than £500.
‘Becoming a landlord remains attractive for thousands of people, but it is clear landlords need to think carefully before making the decision and also to plan ahead,’ said Stephen Reade, lettings operations manager at The Nottingham.
‘Having to wait four months or more before getting tenants in can put a strain on finances and landlords need to ensure they have spare money to invest in their property over and above basic mortgage costs,’ he pointed out.
