Sinking Fund?

[jugglingmonkey]

A question for all landlords/lady's...

How much is a sensible amount to put into a sinking fund on a rental property each month.

Debating whether to let our home out for a few years while we relocate. Mortgage vs rental income should leave about £500 per month for the sinking fund. Is that enough?

What type of property is it and how big? £500 for a two up two down would be a very large amount imo. For a large 5 bed family home perhaps not. What do you think needs doing over the few years or are you thinking only about more routine maintenance and cleaning and redecorating at the end of tenancies, etc?

It's a three bed victorian semi. Gutted with new heating/electrics two years ago so hopefully nothing major to go wrong!

If I were you, I would save what I could each month in an account or savings vehicle where you can access funds if you need to and, hopefully, earn some interest. If you can build some savings now, it would definitely help.

Your fixed costs are the mortgage, management fees, insurances, any maintenance costs - so if you paid for a gardener, for example, instead of expecting the tenants to do it (not suggesting you do this but it could be a cost) annual gas safe check, boiler service, etc. If you can, build up savings which would cover the mortgage for six months so if you have a void period and need to get new tenants or you have to cover the mortgage because the tenants don't pay the rent and you need to evict them you are not struggling financially.

It's a sensible way to do things - you may find with the charges for getting tenants in and your relocation you may not have as much as you think. Good luck!