Buy to let without mortgage

[Estherpologist]

I'm trying to do the maths for what I do with half the value of our house post-divorce, and work out the economics of a buy to let.
So how common is it to rent something like an unfurnished 2 bed flat or house without utilities being included in the rent? I've only ever lived in house shares and my own home.
And if a BTL is without a mortgage, what ball park costs should be expected with maintenance, agent's fees, insurance etc?

If people rent the whole property, they’ll have the council tax and utilities in their name.

I manage my own properties so no agent’s fees. Service charges for flats tend to be 1-2k a year and other expenses are a few hundred a year (eg insurance, boiler checks etc). It’s also necessary to have a buffer for unexpected repairs like the boiler breaking.

Do you understand how income tax on rental works? That’s another important consideration that can make it a non-viable investment for many.

Thanks.
Yes, I've read up on the income tax.
Was there anything you wished you knew before you started?

What’s the rental market like in the area you’re thinking of buying? Because advice will differ depending on whether a two-bed rents for £600 pcm on average or £1,800. The maintenance, insurance and upkeep are going to be very similar on a property regardless of its location, but if the location isn’t one with a strong rental market you’re going to be making very little profit once you’ve paid 20%/40% tax, insurances, and put aside money for maintenance and upkeep.

What’s your reason for wanting a BTL in your position? Most people BTL because by like the idea of somebody else paying the mortgage for them. If you own outright then is it just about getting an income? If so, see above.

Get familiar with the rental market. Work out what sort of rent is achievable and how long properties typically sit empty for between tenants.

Check your council requirements as they vary 're certificates and checks.

There are also checks on occupants you must do but there is no cost.

We did this a couple of years ago. We use an agent to find the tenant as they do all the paperwork and check references. They also do an initial check and sort out the deposit. They have also been helpful about finding workmen to check or fix things. They also suggest what work needed doing. We went for a 3 bed terrace rather than 2 bed as we wanted families who might stay longer. The tenants pay all the bills but we sort out any issues. We looked at a lot of properties before we picked one.

You need to check that the property is suitable to rent out. There are now minimum EPC requirements below which it is not possible to legally let out a property in England.
You need to have annual Gas safety checks. Electrical safety checks depend on whether or not the property is a house in multiple occupation or not.
We pay approx £50 per month to an agency for management fees. They also do all the tenant checks, references, immigration status etc.
Most maintenance and checks, insurance etc can be deducted from rental income as expenses.
Finally you need to check any local requirements for landlords in the area where you want to buy the property. Some councils are bringing in licensed landlord schemes, particularly for HMOs (house shares for people who aren't related). If you buy a 2 bed property, you are unlikely to be in this category. Licensing schemes have a yearly fee but there are very large fines for non-compliance.

Thanks. All very useful info.