11:20 AM, 2nd May 2013, About 13 years ago 2
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A new ebook has been released by Spare Room and is available to download as a PDF via Property118 free of charge. It’s called “Renting by the Room – A Guide to Maximising Rental Profits”.
The media has a fascination with house prices, and together with Property Investment gurus and Estate Agents, spend a lot of time talking about the money to be made from investing in property. However, they rarely mention the single biggest factor in maximizing your return on investment – renting property by the room.
Why?
The truth is that renting by the room can bring in two or even three times the income of the same property let as a single unit. So why does it feature so rarely on property programmes or investment research reports?
Perhaps there’s a belief that this type of letting is too complex for amateur landlords to handle? Maybe they want to keep the juiciest returns for themselves? Either way, it’s high time someone challenged the status quo, and revealed why savvy property investors and landlords are getting into renting by the room.
To download your free copy, simply enter your name and email address below.
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Member Since June 2013 - Comments: 6
16:21 PM, 2nd May 2013, About 13 years ago
It’s great that you can triple your yields, but if every landlord did nothing but let to sharers, they’d alienate the largest part of the market and completely depress demand in the process. Sharers are on the rise because single rooms are cheaper, but what couple wants to rent one room in a shared house, let alone a family? Nine times out of ten, sharing is a necessity rather than a choice.
We shouldn’t pursue profits so dogmatically that we forget we’re providing a service AND contributing to a long-term, sustainable alternative to housing. No landlord should forget that there’s more to their investment than the short term. There’s a place in the market for single-room lets and shared accommodation, but its complexity and narrow demographic appeal mean that people should be discouraged from saturating the market with it.
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Member Since January 1970 - Comments: 1108
23:52 PM, 2nd May 2013, About 13 years ago
A big problem is that the LL has to provide ALL domestic goods for a shared property.
I have 2 bed 2 bath flats.
Ideal for sharers.
I am not going to go out and buy what is needed and would be expected to be supplied.
Effectively a sharer is a lodger.
They expect everything inclusive.
That is not viable at room rates.
Really these sharers are actually joint tenants and then they would be responsible for supplying all the domestic goods between them.
I would have no issue in offering for an all inclusive rate £675 per room; all inclusive; with up to 4 people at the property.
However we then enter into the HMO territory.
Would my flats with 2 couples sharing the flat be an HMO!!?
If so then it becomes unviable; I am not going to change things in a purpose built to satisfy the council HMO regs; like fire alarm panel and hard-wired interlinked FD system.
So I just offer a tenant that they can take in a lodger if they wish but they are responsible for ALL the rent irrespective of a lodger/s.
Shares want it all but for less; it ain’t gonna happen until they start paying more!