Investing in a property portfolio is a long term strategy, demanding major cost and time commitments. After repairs, agent fees and maintenance, voids can add to property costs.
According to Camelot Europe, maintaining 100 investment properties could result in needless spending amounting to thousands every year. That’s on top of the many well known costs that come with buying and letting a property.
According to a 2015 survey, the average annual cost for maintaining a property was £506. That’s £50,600 across a 100 property portfolio. Then there’s repairs, which are incurred by 90% of landlords. Repairs cost an average of £376 per property, or for the 100 property portfolio, £37,600.
Property management fees can also eat into returns. On average, 77% of landlords paid £438 per annum to their letting agent. Multiply that by 100 properties, and you’re paying £43,800.
But it’s the ‘all other costs’ that were astonishing at £3,933 per property per annum, the firm believes. That’s a total of £393,300 across your portfolio. Many of these ‘other costs’ will accumulate whilst your property is standing empty. Camelot says that its vacant property security solution can help eliminate the problem.
Void property costs owners thousands
On top of the substantial costs of running a buy to let investment portfolio, owners must factor in these extra costs for periods when their buildings are empty:
- Empty property insurance
Property costs more to insure when it’s empty. This is because unoccupied buildings are considered more of a risk. Most standard home insurance policies do not cover properties empty for more than 30 days, and specialist insurance policies come at a premium. - Void property inspections
Most vacant property insurance policies insist that your property is inspected to validate your cover. This can cost anything from £30 to £75 each week, per property. If each of your 100 properties requires just one inspection, that’s potentially £75,000 in additional costs. - Purchase Orders
Raising a PO for each inspection could add £20-£100, potentially £10,000 across your portfolio.
- Extra council tax
If your property stays vacant longer, further costs come into play. Following plans outlined in the 2017 Autumn Budget, owners of properties empty for more than 2 years could soon be liable for double council tax, the amount councils can charge will jump from 50% extra to 100% extra.
How do Camelot Guardians help you avoid these costs?
Moving Camelot Property Guardians into an empty property as a security solution can save money
- Live-in Guardians highlight any issues within the property immediately, so repair costs are reduced dramatically. A burst pipe left unnoticed between monthly inspections can cause a lot of costly damage.
- Expensive empty property insurance is no longer needed.
- No need for void property inspections. Our property inspectors make monthly site inspections feeding back all relevant information for your peace of mind.
- Decrease the risk of getting sued by intruders. It’s a risk that’s generally overlooked, but anyone who intrudes on a property has a legal right to sue the owner for personal injury. Guardians secure the premises sufficiently to stop any intrusions.
- Extra council tax premiums for empty property no longer apply, and utility bills are covered by the fees paid by Guardians to use the premises.
The firm also claims that these measures are cost neutral and could result in a financial gain. The firm claims it has already helped many property owners save money by securing their property portfolios.
‘This solution is extremely beneficial for investors,’ said Camelot Europe operations director Paul Lloyd. ‘Not only is it a cost neutral security method, it can save you thousands and in some instances make you money. It will add value to properties and in turn communities’.
Arrange your no obligation assessment with Camelot today. Email us on uk-info@cameloteurope.com or call 0845 262 0173
