Buy to let is the purchase of a residential property specifically to let it out to tenants, usually with the aim of earning rental income and capital growth.
From a QS and surveying point of view, buy to let investors often need advice on the cost of refurbishment, conversion or repair before a property is let, and on ongoing maintenance costs that affect the rental yield. Works may also be needed to meet safety and letting standards, and some properties, such as larger houses in multiple occupation, require a licence from the local authority. The distinction between repairs and improvements matters, because it affects how expenditure is treated for tax purposes.
- Typical costs include refurbishment, compliance works, maintenance and void periods.
- Specialist buy to let mortgages are normally assessed against the expected rent.
Related terms: rental yield, refurbishment, house in multiple occupation, capital expenditure.
