When calculating net rental yield for a London HMO, what specific ongoing costs should I definitely include in my calculations beyond mortgage payments, such as management fees, voids, and maintenance, to get an accurate figure?
Quick Answer
Accurately calculating net rental yield for a London HMO requires meticulous accounting for all ongoing costs. Beyond the mortgage, include property management (10-15%), council tax, utilities, maintenance (10-15% of gross rent), insurance, and voids (5-10% of gross annual rent) to avoid overstating profitability.
About This Topic
Accurately calculate London HMO net rental yield by including all ongoing costs like 10-15% management fees, 10-15% maintenance, 5-10% voids, council tax, and utilities. Avoid overstating profitability for your property investments.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
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