Good idea or not ?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Good idea or not ?

    Am thinking of purchasing a three bed terraced in North Manchester and then let it out to a couple / family.
    Now I was speaking to a guy this morning who has been a prop investor for many years and he said why not think of letting it out on an individual room basis !! In fact I could probably turn the loft into 2 rooms, No universities there though (Whitefield ). Has anyone done this in a non-student area with any success or should I just go for a straight forward let ?

    #2
    Originally posted by shirleyb View Post
    Am thinking of purchasing a three bed terraced in North Manchester and then let it out to a couple / family.
    Now I was speaking to a guy this morning who has been a prop investor for many years and he said why not think of letting it out on an individual room basis !! In fact I could probably turn the loft into 2 rooms, No universities there though (Whitefield ). Has anyone done this in a non-student area with any success or should I just go for a straight forward let ?
    Letting it out to three strangers (strangers to each other, I mean) with what will no doubt end up to be differently timed tenancy agreements, sounds like a complete nightmare and I would avoid it at all cost, especially if there is no sizeable student population in the area. The slight increase in rental income will be more than offset by the hassle.

    Market it for a couple/young professionals on a joint tenancy contract, (or to a family), is my advice. Finding three people who know each other to begin with is no guarantee they'll still be speaking to each other in 12 months' time, but it has to be better than three loners.

    Apart from anything else, joint tenancy agreements allow you to pursue any or all of the tenants, if rent is in arrears.

    Be sure to reference all prospctive tenants carefully and get guarantors for low/no income tenants.

    Good luck.
    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

    Comment


      #3
      Thanks for quick reply MTG. Makes sense I suppose what you say. Perhapa I was being a bit greedy. Just thought of £450 pcm for property to family but maybe 4 x 200 pcm = £800 pcm for 4 individuals.

      Comment


        #4
        Letting out a property on an individual room basis will bring you more income but give you much more work to do. You also create a "house in multiple occupation" and this requires approval by your local authority who may well require modifications to be made from the fire regulations point of view. Furthermore the "common facilities" will receive much more wear and tear thus require more servicing costs.

        As recommended above - rent it out to a single couple or family.

        P.P.
        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

        Comment

        Latest Activity

        Collapse

        Working...
        X