Costly Landlord Mistakes Revealed

It is fascinating (and a bit sobering) to see how the “hidden” costs of property management are catching up with even experienced investors. A survey, commissioned by Together and conducted by Censuswide, highlights that buy-to-let success is often as much about avoiding pitfalls as it is about finding the right property.

Based on the research, here is a breakdown of the most common “expensive errors” currently impacting UK landlords:

1. The Renovation Trap

The most frequent mistake, cited by 19% of landlords, is overspending on renovations. Many investors fall into the trap of “emotional” decorating—renovating a property to their own personal taste rather than a tenant’s needs. This often results in high costs that do not translate into a higher property valuation or increased rent.

2. Poor Timing & Location

• Market Timing (16%): A significant number of landlords regret selling too early (missing out on capital growth) or holding onto a property for too long (incurring maintenance costs on a depreciating asset).

• Location Errors (15%): Purchasing in areas with low rental demand or poor yields remains a common regret. This often happens when investors buy “cheap” properties without researching local infrastructure or employment rates.

3. Underestimating “The Tenant Factor”

The survey highlights a major gap between expected and actual property wear and tear:

• Wear and Tear (18%): Many were shocked by the physical impact tenants had on the property.

• Maintenance Miscalculations (16%): Ongoing repair costs were frequently underestimated.

• Deposit & Pet Regrets: 11% wished they had secured a larger deposit, and 9% regretted allowing pets due to the subsequent damage costs.

4. Financial & Regulatory Oversight

• Rising Professional Fees (16%): Many failed to account for the creeping costs of legal services and property management.

• Debt & Safety Nets: 13% admitted to taking on too much debt, while 15% operated without a financial buffer or proper insurance, leaving them vulnerable to “void periods” (when the property is empty).

• The “Green” Gap (14%): A failure to invest in energy efficiency and stay ahead of tax/regulatory changes was also a key regret.

The key learning seems to be that that residential landlords need to keep an ever increasing balance on deposit for repairs, maintenance, regulatory costs, voids and general maintenance.

Matthew Dean 4th January 2026.