Income & Expenditure of being a landlord

airgead07 said:

hi cremeegg, repairs and maintence were only estimates, they do seem a bit on the high side but was kind of averaging them over a few years, say for example tenants moved out after a few years and I hadto spend a few thousand on repairs etc.

Are my figures correct in that I would make an after tax profit of €1882 but when you factor in all the associated costs of renting the property, it would be costing me circa €4k a year?

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Based on your figures which seem reasonable to me, your profit from renting will be €1882.

What do you mean by associated costs? If they are costs, put them in the costs and they will be reflected in the €1882, otherwise forget them.

From a cashflow point of view you will have to make capital repayments on your mortgage. This has nothing to do with the rent or sell decision as these have to be paid in any case.

airgead07 said:

hi cremeegg, repairs and maintence were only estimates, they do seem a bit on the high side but was kind of averaging them over a few years, say for example tenants moved out after a few years and I hadto spend a few thousand on repairs etc.

Are my figures correct in that I would make an after tax profit of €1882 but when you factor in all the associated costs of renting the property, it would be costing me circa €4k a year?

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airgead07 - it will cost you about €4,000 from your own pocket to rent out the house assuming all your figures are correct. But this includes the capital repayments on your mortgage.(For what it's worth I also think your repairs and maintenance figures are over-estimated).

Another way of looking at it is from cremeegg's angle. Your profit will be €1882 but you will have to pay the capital portion payments of the mortgage yourself (unless you can get an IO mortgage).