Which are currently the most and least profitable cities for landlords?

Our ‘wash its face’ calculation is a vital part of our property selection process. Allowing us to work out if a property will be an asset or a liability. While we like to be as specific as possible when working out if an area will be profitable or not, it can be difficult to compare all areas of a cities or multiple towns.

A new study by CIA landlords, in an attempt to find the most lucrative cities in the UK, has done some of the research for us. Many of the featured towns are common sights on lists like this, e.g. Brighton and London, purely because demand is so ridiculously high rents can be pushed up. There are, however, some towns that are affordable and hopefully viable investment opportunities.

This article also features the least profitable towns which also has some popular towns but clearly demand is not high enough in these areas. As we mentioned, we have to look more specifically at certain locations, but this whole town research can give us some ideas of where to look for first.

Table 1. Top 10 places to become a landlord based on average property price, mortgage costs, average rent and monthly costs and profit.

*The landlord monthly costs have been calculated by taking the average monthly sum of tenancy deposits, landlord insurance, energy performance certificates, gas safety certificates, national insurance, license fee, average appliance costs and average furniture costs. **The monthly profit total has been calculated by taking the sum of the average rent, minus the mortgage and monthly fees. –  propertyreporter.co.uk

Although on the surface it seems that being a landlord is a constant flow of income, there are some cities where you’ll find yourself losing money. Due to the cost of a mortgage, monthly fees and rent charge, there are a number of locations you might find yourself at a loss in profit per month.

The table below shows the worst cities to become a landlord in 2020.

The Annual Required Fees to Become A Landlord Costs £609.95

As part of the cost of being a landlord, there are fixed fees that you must adhere to. It’s important to make note of these and keep an eye on when they need to be renewed. – propertyreporter.co.uk

https://www.propertyreporter.co.uk/landlords/which-are-currently-the-most-and-least-profitable-cities-for-landlords.html

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