Wednesday, 17 February 2016

Fantastic terraced house in Burley with potential 12.6% yield

This 5 bed house on Knowle Terrace in Burley is an ideal property for a landlord to looking to add value and make a great investment. It's situated just next to the Stanmore's giving really easy access to both Headingley and just off Burley Road which is perfect for either students or professionals. 

From a glance at the floorplan it does seem to suffer from having one too many bedrooms squeezed in to it. Whilst trying to maximise the rent with getting in as many tenants as possible is understandable, from my experience what it ends up doing is putting potential tenants off. Very few these days are willing to take the smaller room even with the seemingly enticing option of a cheaper rent. 

My advise would be to spend some money on utilising the space better and making it more desirable thus easier to rent. I would do this by using the current small bedroom on the first floor and creating an en-suite for the larger bedroom on that floor. There's already a bathroom on the top floor so by just moving the door you can make that top floor bedroom en-suite also. Down in the basement, I would create a jack-and-jill bathroom which the two bedrooms down there could share. 

By creating a house with more even sized bedrooms and finishing it off to a high spec you're likely to achieve an annual rent of £17,056 which if you're overall spend for the property and the work came to around £135,000 you'd be looking at a cracking return of nearly 13%!

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