Currently exploring the possibility of moving out of our current house (in negative equity), renting it out and buying a new one. Just want to check that my rental income calculations are correct.
Total expenses
Management fees : €200
House insurance: €300
Mortgage protection: €500
Letting agent: €1000
Mortgage interest (75%): €2610
Boiler service: €80
PRTB: €90
Wear & tear (12.5% of €1500): €187.5
Labour: €500
Total: €5,468
Rental income: €13,800
Tax: (€13,800-€5,468) @ 53% = €4,416
Assuming a "profit" when mortgage repayments (no TRS) are deducted from rental income of €760 and expenses above of €2,670 this means that renting out will cost about €6,300 per year.
Does all this seem correct?
Total expenses
Management fees : €200
House insurance: €300
Mortgage protection: €500
Letting agent: €1000
Mortgage interest (75%): €2610
Boiler service: €80
PRTB: €90
Wear & tear (12.5% of €1500): €187.5
Labour: €500
Total: €5,468
Rental income: €13,800
Tax: (€13,800-€5,468) @ 53% = €4,416
Assuming a "profit" when mortgage repayments (no TRS) are deducted from rental income of €760 and expenses above of €2,670 this means that renting out will cost about €6,300 per year.
Does all this seem correct?