Hi all,
Im wondering how much you have per year in expenses in your self assessments per property ? (minus morrgage interest deductions)
Mine seem fairly high, but I have just paid to get my property from a d to a c rating and I’ve had a churn of tenants.
Just wondering what the average is.
It varies so much. Some years, I’ll spend a lot on a property, and make a loss on it, but then it might go for years with little spent. I think you’ll struggle to get useful comparisons from such a small survey.
Just ask yourself… am I getting the best rent? Am i spending wisely? Be happy with your own investment choices.
average? Ha! Everyone’s situation varies so widely from everyone else’s that although there is obviously an average, it would be meaningless to compare yours to it.
At one point in the last 15 years, I had 6 years worth of losses that I carried over one year after another. But I could sustain this and I incurred them by refurbing many properties replacing like for like (boilers, kitchens, bathrooms, carpets, etc). This was an upfront investment that I’ve now paid off and am generating my expected profits.
I use that illustration to show how even one LL can have wildly different figures year on year.
What matters is whether your figures match your business plan.
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Wait - you do have a business plan, right? 
Thank you very much !
No, what’s a business plan?
This would be where you set out what your future estimated costs and revenues will be and hence your likely future profits or losses. It also idenifies risks and how you will mitigate them, eg voids or bad tenants mitigated by cash reserves. You should have done this prior to taking on a mortgage, but most people don’t. These days making a profit is harder so a plan is more important.
Re your initial question, this year my costs so were so high, HMRC queried my self assessment to check I hadn’t made a mistake,but didn’t ask for proof. Ignoring exceptional costs like new boilers or major refurbs, my costs are about 30% of gross revenue. I don’t have mortgages.
Ongoing repairs and capital improvements are 2 very different things
May be give us an idea of your numbers then people will be able to comment
I know somebody who sets aside 2 months rent each year for maintenance and repairs- whilst others don’t budget or set aside money
I have two 2 bed apartments both within small purpose built blocks.
Property 1
Last year has had to complete redecoration which consisted of painting and replacing 6 window blinds as it is on the ground floor and a new washer/dryer replacing a washing machine which was a complete waste of money as the tenants don’t use the drying function. Choosing instead to air dry using a large clothes horse in the dining area☹️ This year I have had to replace the boiler. This property is currently recording a loss. It will probably break even around Christmas and hopefully record a modest profit in the new year.
Property 2
In contrast is a newer property with new fixtures and fittings, hasn’t required any maintenance so is showing a good profit.
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