In this blog we discuss the cost of tenants - from finding them in the first place, to time taken on phone calls.
The cost of tenants
We used the term “cost of tenants” rather loosely because within this label we’re including finding them in the first place!
But, whatever way you look at it, tenants are a cost centre.
The main costs associated with tenants are:
- Finding them in the first place Replacing them Dealing with bad ones
- Every six or 12 months, or every couple of years, you’re going to need a new tenant for your property. If you have a large portfolio, there might only rarely be times when all your properties are full.
You can do go about this in two ways, one cheaper than the other in immediate costs (but potentially more costly later).
You can go through an expensive letting agency, or you can go out and get the tenants yourself (through Tepilo), which will be cheaper overall. Except if you get a bad tenant, of course.
If you do this, then you could end up wishing you had paid the extra and used a reputable letting agency who took up references and had the experience to vet properly.
In addition, under tenants, you should include all the minor – but cumulative - costs such as phone calls and travel.
With thanks to BuyAssociation.