Are you considering investing in buy-to-let property in Wimbledon, or in the surrounding areas such as Coombe, Roehampton, Raynes Park or New Malden? If so, you’re making a wise decision.
These popular south west London areas are sought after by tenants – whether young professionals working in the town centre who want to take advantage of its great transport links, or families attracted by the good schools and lovely green spaces like Wimbledon Common or Richmond Park
But before you take the plunge, it’s worth thinking about your budget—the costs of buying and maintaining the property versus your projected income.
To help you get a handle on the costs of being a landlord, we discuss 16 key expenses to consider—whether essential costs, recommended investments, or optional extras.
If you’re investing in property, or deciding to rent out a property you’re already buying, you will need a specific buy-to-let mortgage. Interest rates may be higher than for residential mortgages and you almost always need a larger deposit.
Mortgage rates recently reached their highest average in almost 20 years but at the end of 2024 and the first half of 2025 the Bank of England base rate has gradually reduced, bringing more competitive mortgage deals onto the market again.
Buy-to-let mortgage rates in mid-2025 are available at around 4.5% to 5.5%, with deposits of 25% to 40% required for the majority of BTL mortgages.
Anyone investing in property needs to budget for stamp duty land tax (SDLT). The percentage you pay rises incrementally with the purchase price and there is additional 5% second home surcharge, so this can be high in Wimbledon.
To provide an example, the average property in Wimbledon sold for an average £836,265 over the last 12 months.
The stamp duty charge on a second property at that purchase price would be £73,626 based on the following rates:
(these rates incorporate the second home surcharge of 5%)
You don’t have to pay a letting agent to manage your property, but most landlords do – unless they wish to stay hands-on and devote lots of time to the business. Agents’ fees vary, with some asking for a percentage of the rent and others quoting a fixed cost.
What you pay will depend on the level of service – whether you use the agent to find and vet tenants, collect rents or provide full-scale property management.
For a fully managed letting service, the agent will usually charge a percentage of the monthly rate at about 8% to 15%.
If you only require a tenant finding service, letting agents will either charge a one-off flat fee of around £500 to £1,200. Some agents charge a percentage of the first month’s rent which will usually be in the region of 50% to 70%.
All property ownership comes with some obligations to fund repairs and maintenance. Still, as a landlord, you have additional legal responsibilities to keep the property warm, safe and in a decent condition. Remember that repair costs can fluctuate and will be influenced by the age, type and size of your property.
As with a residential property, you’ll want to insure the rental home. Buildings insurance isn’t a legal requirement but remains pretty much essential, especially if you have a mortgage. You should also consider contents insurance if you provide furniture, appliances, fixtures, and fittings.
Before you start finding tenants, you will need to arrange an energy performance certificate (EPC) inspection, a gas safety check conducted by a gas safe registered engineer and an electrical installation report to stay within the law. You’ll also need to purchase and fit smoke and carbon monoxide alarms. Find out more about these safety essentials on the government website.
A gas safety certificate will cost between £60 and £90, while an EPC costs around £60 to £120. An electrical installation condition report (EICR) costs around £100 up to £250, depending on the size of the property and complexity of the electrical system.
You will need to pay income tax at the appropriate rate on your rental income. Should you decide to sell up in the future, you may also be liable for capital gains tax. Be aware of other charges, too—council tax, for example, is usually paid by the property occupant but will fall on you during void periods.
Savings for void periods – It’s not always possible to have your property occupied without any gaps, so budget for void periods – if a tenant leaves unexpectedly or the property becomes uninhabitable.
You’ll need to decide whether to furnish the property based on the preferences of your target tenants. Even unfurnished homes need appliances, carpets, curtains, and other fittings, so budget for these, including the costs of replacement and wear and tear.
It’s not always possible to have your property occupied without any gaps, so budget for void periods – if a tenant leaves unexpectedly or the property becomes uninhabitable.
Another important extra is a specialist tenant vetting service, which carries out thorough credit checks and background screening. This makes it far more likely that you will get high-quality tenants who take care of the property and pay their rent on time.
If you haven’t already done so, you’ll need to register as self-employed and complete an annual tax return. Employing the services of an accountant can be useful if you think you’d struggle to manage your own tax affairs, and especially if your financial situation is complex or you’re looking to have a portfolio of properties. It’s likely they can help you reduce the amount of tax you pay.
A detailed inventory is invaluable when it comes to laying out everything in the rental home and its condition, protecting you against future deposit disputes. You can create one yourself using online checklists, but it’s often wise to pay for a professional inventory service instead.
Again, if you’re a hands-on landlord, setting up contracts for boiler servicing and repairs, plumbing emergencies etc. are useful, meaning you can quickly resolve tenant issues without unexpected costs.
Aside from standard landlord buildings and contents insurance, you could consider other products. These include rent guarantee insurance, which makes sure your rent is paid if your tenant defaults, or if your property is empty for some reason. Some policies come with additional legal cover if you need to take your tenant to court.
For an annual fee, organisations such as the National Residential Landlords Association can provide lettings information, webinars and legal support. This might be useful if you aren’t using a letting agent’s full management service, and end up tackling several landlord responsibilities yourself.
Rental homes need updating to keep them fresh, appealing and in line with tenant expectations, so keep this in mind as a potential expense.
In addition to the costs listed above, there are some potential hidden costs to be aware of, these include:
Currently, private rental properties must meet a minimum EPC rating of G and if they do not meet the minimum rating, energy performance improvements must be carried out to bring it within the required rating. This might include paying for insulation, a new boiler and other recommendations that are provided on the EPC report.
Under new plans, the minimum rating is due to rise to rating C, this should apply to new tenancies from 2028 and 2030 for existing tenancies.
The Renter’s Rights Bill that is set to be introduced in the near future and one of the new rules will be for landlords to become members of a new landlord ombudsman, which will incur an annual fee. The fee is yet to be announced.
Another potential cost is court fees should you need to evict a tenant. The Renter’s Rights Bill will bring stricter eviction processes requiring court orders for evictions, so this could be another cost should you be in this situation. Comprehensive screening of prospective tenants should help to reduce the likelihood of being in a position where you need a court order to evict a tenant.
If you’re considering becoming a landlord, talk to us. Whether you’re looking in Wimbledon or slightly further afield in areas like Clapham, Battersea, Wandsworth or Putney – we can help. Let us guide you through all the issues that accompany rental property, and explain the services we can offer to local landlords.
Ticking off the items on this list will help you keep track of your legal responsibilities when renting out a property.
Book a quick phone consultation with one of our negotiators.
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