What ongoing monthly costs do I have after purchasing a rented property?

We answer these and many other questions in our video blog episodes.

Here is the transcript of episode 3 to read:

The question of the current monthlycosts can be answered easily, because from your account in the case of a rented property monthly only three amounts debited: interest, repayment and the ancillary costs.

The additional costs include the portion of the service charge that the tenant does not pay. Included in the additional costs are, for example, the management fees. To ensure you don't have to worry about anything, it is always recommended to hire a professional management company, which costs approximately EUR 15 net per month. The management prepares the utility bill, ensures the property is continuously let and can always be reached by the tenant if there are any problems in the property itself.

Your tenant will then also know that they can call the management office at any time if something is wrong. You therefore don't need to worry about anything. 

In addition, the service charges include ongoing repair costs and reserves for future maintenance. 

Thus, the monthly debits from your account consist of these three main factors: interest and repayment, as well as non-recoverable ancillary costs, which cover management fees, reserves, and ongoing maintenance. 

On the other hand, there are the revenues, the rent, and great tax advantages for you.

Keywords:
property rental, monthly costs, interest, repayment, administration, maintenance, utility bills, tenants, utility bill settlement, repair costs, reserves, mortgage, tenancy agreement, initial letting, re-letting, current account direct debits, deposit