In this blog, we go through one of our latest deals in Swindon, this deal is a housing association project. We find our clients a suitable property and lease the property to a national housing association. This will give our clients a guaranteed rent for 5 years with no maintenance, no voids, and no management.
This particular property we secured for £185,000. It was a 3 bedroom terrace house in Swindon which we needed to convert into a 4 bedroom HMO. The property did not require a HMO license but it did need the HMO hardware in place. This Refurbishment cost £12,000.
The housing association offed a guaranteed rent of £1,600 per month. Renting this property on the open market to a single tenant would likely achieve £850 per month which is almost half of what the housing association offered. Renting this property room by room as a HMO may achieve £1,600 once all of the rooms are tenanted. However, the landlord would need to cover the gas, the electricity, the water rates, and the media which would reduce profits. When leasing a property to the housing association all of these costs are covered.
Watch the video below to see inside the property!