A significant number of Britain's buy-to-let investors are grappling with major financial regrets due to a series of common and costly property management mistakes, a new survey has revealed.
From Renovation Overspend to Poor Timing
The research, commissioned by specialist property lender Together and conducted by Censuswide in March, polled 1,000 landlords across the UK. It found that nearly one-fifth (19%) admitted to overspending on renovations that failed to deliver a boost in either property value or rental income.
Timing the market also proved difficult for many. 16% of landlords said they regretted selling properties too early or holding onto them for too long, thereby missing out on more lucrative financial opportunities.
Underestimating Tenants and Ongoing Costs
A recurring and expensive theme was the miscalculation of tenant impact and running costs. 18% of respondents expressed surprise at the level of wear and tear inflicted on their properties, leading to unexpected repair bills.
Compounding this, a further 16% confessed to simply miscalculating these ongoing maintenance expenses, which severely impacted their overall profits. Related to tenant management, 11% regretted not asking for a larger deposit to cover potential damage, while 9% said allowing pets had turned out to be a costly error.
Strategic Errors in Portfolio and Location
The survey highlighted broader strategic missteps as well. One in six (16%) landlords admitted they had expanded too quickly by taking on too many properties. An equal proportion had failed to budget for rising professional service costs, such as legal and property management fees.
Location proved critical, with 15% stating that purchasing properties in the wrong area—ones that provided low returns—was a major financial mistake. Furthermore, 14% pointed to not investing in energy efficiency as a regret, a decision that may now carry greater weight due to evolving regulations.
Financial preparedness was another weak spot. 15% of landlords wished they had established a better safety net or taken out appropriate insurance for unexpected costs, and 13% acknowledged taking on excessive debt. 14% also said they failed to anticipate regulatory and tax changes.
Ryan Etchells, chief commercial officer at Together, commented on the findings: “Landlords need to do their research on locations, property types and condition and the rental market as well as having adequate savings to cover wear and tear and to deal with any issues such as unexpected maintenance costs or void periods.”
He added, “A healthy rental sector is crucial to a well-functioning housing market and there are numerous opportunities for property professionals to achieve good yields while providing the rental homes which the UK needs.”
