Multiple Occupancy
I admit I have always been fascinated by the draw of renting out buy-to-let properties to students, and today is no different. Whilst I was researching this morning I came across an incredible article in the Financial Times about the CBS’s plans to invest £20m into discounted residential properties.
As a student landlord specialist, their ultimate goal through this investment scheme is to invest in run down properties situated in desirable student areas, refurnish them and market them out as multiple occupancy homes in just 6 weeks!
Yet the best bit has to be their rental predictions. For a single person rent of £100 a week they are expecting revenues of £5,200 a year. Multiply that by 3 and one house could provide them with a rental income of £15,600 a year.
And they definitely seem to know what they are talking about. They currently have an occupancy rate of 90% to 99%!
So how can we take their successes and translate them into our own investments? Well I know I haven’t got £20m lying around to invest in multiple properties, but the principle I feel is still the same.
By doing the research, investing at 20% below value and ensuring you have got the tenancy to match the rental values, it is possible to make a substantial profit from multiple occupancy. It is just a matter of finding the right locations.
Wendy xx
