London Property Services Rentals Sales

Running costs

The net income or "bottom line" derived from a property is calculated by deducting the running costs from the gross annual income of the property . Running costs are likely to include:

Letting & management fees
Service charges
Ground rents
Insurance
Repairs
Maintenance
Refurbishment costs
Void periods
Borrowing costs

However, a number of factors influence or impact running costs:

Rental income, lettability and void periods
The age, condition and size of the property
Maintenance liabilities such as gardens or lifts
The quality of tenant
Whether the property is furnished or unfurnished
The quality of materials used in refurbishment or decoration

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