The costs include:
- Switching from a residential to a buy-to-let mortgage - you are obliged to inform your lender if you intend to become a landlord or your buildings insurance may be invalidated. Some lenders will charge you a fee and may review your interest rate.
- Tax on any profits - the rate you pay depends largely on your other income.
- The cost of registering and protecting a tenant's deposit - around £100 (although one scheme, the Deposit Protection Service, is free.)
- Gas safety certificate - this depends on the number of gas appliances you have. British Gas currently charges £65 for a boiler-only gas safety check.
- Energy performance certificate - budget for between £50 and £100
- Landlord insurance - prices are highly variable depending on the area of the property and the type of tenants that occupy it
- Repairs and maintenance - responsibility for these usually lies with the landlord, although this may not be the case if you lease the property to a council or housing association
- Letting agency fees - look at the headline fees as well as the small print in case of unexpected extra charges such as a fee if you decide to sell up.