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Of course you can tell from the photo it isn't a traditional six bedroom house, but rather a three bedroom house that has had some tinkering and extending to create six bedrooms on a HMO basis.
This strategy isn't for everyone, but as this property shows the rental income can be high. Of course that's if all the rooms are let and such properties will traditionally be let as 'bills included' i.e. the landlord pays the council tax, water, gas, electricity, tv licence, broadband etc.
Even so, a 9.5% gross yield on a £300,000 property suggests a rental income of £2,375pcm, which is around £400pcm per room, which stacks up. It's not the nicest HMO I've seen; the kitchen is tired and the six bedrooms share three toilets and two showers, so there is a chance this could be left behind as more and more purpose-built shared accommodation (complete with en-suites) get built, particularly for the student market.
Nevertheless, £300,000 isn't much more than the 'bricks and mortar' value of the property so it's a decent risk and property regardless of use. It is still a large (circa 1,100 square feet) three or four bedroom house in it's traditional 'bedrooms upstairs, living space downstairs' configuration. It's location near to St Richards Hospital should make it popular with tenants, regardless if it's aimed at sharers or a family let.
I do wonder if it's a coincidence that this house has come up for sale just after the new HMO legislation has come into force. As part of this, if a house is shared by five or more people it needs a licence (costing around £1,000 every five years). Currently there's only four of the six rooms rented...is this because it currently doesn't have a licence i.e. the landlord is purposely below the five occupants but marketing it in it's former glory? To get a licence are there improvements that will need to be made? That's definitely something to check if you're planning to keep it as a HMO. If you are there's scope to improve certain elements to keep it competitive as newer shared properties come to market, whilst potentially increasing the already decent income it achieves further.
The property is on the market with Nexa Properties and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-57679479.html
If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
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