This 5 bed house on Village Street in Burley is in a great
spot, especially for professional renters. It’s not far from Burley Park train
station and close to plenty of bus routes making commuting into town or nearby
areas easy and quick.
The lure of the possibility of having a property that would
bring in the rent of 5 tenants is understandably appealing but looking at the
ad closer it says to me that you’re unlikely to get that. Not only is this
property one of many where too many rooms have been squeezed in to the space,
it also only has one bathroom. Obviously you could then use the space better to
create another one but this suggests to me that in its current state it wouldn't
meet the requirements in order to be granted a HMO licence. If that was the
case you wouldn't be able to convert in to a licensable HMO property as the
council have put a stop to that.
In any case, this property has only been let to 3 tenants
which should probably tell you all you need to know. The floor plan of its
current lay out shows how the space isn't being used to its full potential. I would suggest converting it into a 3 bed
en-suite property, fitting a new kitchen and re-carpeting & decorating.
This way you would be able to achieve a far better rent and if done to a high
standard it should bring in around £1,235pcm or £14,820pcm.
The work involved should probably cost around £30k so if you
managed to get the property for around £125,000 it should give you a return of
nearly 10%, plus with such a high quality property you’d be safe in the
knowledge that it would easily let out all year round.
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