Landlord Example Figures
Based on a recent 36 month agreement on a two bed flat in Hackney
PROPERTY CONDITION:
Presentation:
Average/tired. In need of decoration and professional clean. No furniture present.
Furnishings:
Fridge freezer and washing machine supplied by LL.
Market Rent:
£1700 per calendar month.
GROSS INCOME:
36 months rent:
£61,200
PRE-TENANCY EXPENDITURES:
Full Decoration:
£2160.00 (£1800 + VAT)
Furniture Requirements:
£1800
Professional Clean:
£180
FIXED EXPENDITURES:
Agent's Fee:
£11,016
Gas Safety Certificates:
£255.00 (x3)
ECIR
£260
Check in / Inventory fee
£220
Check out Inspection
£150
Based on 15% + VAT (Full management for three years)
£85 per annum
LIKELY EXPENDITURES: 
(Statistics from ‘The Negotiator’ magazine)
Maintenance:
£3182.40
Void Period:
£3530.76
5.2% of income over 36 months.
Based on 3 weeks void per annum.
NET PROFIT & LOSS:
36 months income:
£61,200
Full Decoration:
Agent Fee:
£11,016
Professional pre-tenancy clean:
£180
Gas Safety Certificate:
£225
ECIR:
£260
Check in / Inventory fee:
£220
Check out Inspection:
£150
Likely maintenance fees:
£3182.40
Void Period:
£3530.76
Total Gross Income:
£61,200
Total Expenditure:
£20,924.16
TOTAL NET INCOME:
£40,275.84
TOTAL NET INCOME:
£13,425.28
TOTAL NET INCOME:
£1118.77
Over three years.
Nine weeks over three years.
Over three years.
Over three years.
Over three years.
Per annum.
Per calendar month.
Over a three year period, the above flat will earn an average net income to the landlord a sum of £1118.77 per calendar month. However, during this term the landlord will receive numerous calls regarding fixed issues and many probable issues such as rent being late, rent not being paid, a tap not working, a boiler has broken down, bed frame has collapsed, dispute on how property has been handed back, the list goes on.
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Above we have touched on the expenses, but more importantly, if you are at a family gathering or on holiday, the last thing you will want is an email from a tenant or agent stating the hot water and heating has stopped and that you need to send/pay for an engineer. The whole point of an investment is passive income, zero stress. Sadhana Property takes on all these burdens.
If you have any queries, please  contact us.