7 Bedroom Terraced House Sold in Birmingham, B16
| Reference | 47788 |
| Address |
Rotton Park Road, Birmingham, B16 (Map Location) |
| Beds | 7 |
| Baths | 7 |
| Type | Terraced house |
| Tenure | Freehold |
A rare opportunity to acquire an extremely high yielding (9.8%) fully tenanted HMO property in Edgbaston with incredibly high demand, that has been fully furnished to a premium standard, and has been set up as a very low maintenance/hands off investment. 7 bed Property. 5 En-suite Double Bedrooms 2 Studio Apartments HMO Licensed Oct 2020-Oct 2025 (& Sui Generis Planning) Rental Yield: £44,460 per annum
Description
Located in Edgbaston, a much sought-after area with Article 4 (limiting the number of HMO properties), making this a rare opportunity to buy an incredibly high yielding (9.8%) HMO property in an area which is under constant high demand with tenants.
Recently refurbished up to a premium standard.
Fully tenanted. 0% vacant periods since the house was refurbished in Dec 2020, and incredibly low turnover of happy tenants.
Current Rental Yield:
Studio 1: £695 pm
Studio 2: £635 pm
Room 1: £475 pm
Room 2: £475 pm
Room 3: £445 pm
Room 4: £495 pm
Room 5: £485 pm
Total: £3705 per month
Current Rental Yield: £44,460
(Potential £46,000 – Several rooms were filled at start of pandemic when rent was at an all-time low. If tenants from 4 of the rooms leave these will be relisted with a rent increase of £30-40pm).
Hands off investment and is set up to be remotely managed very easily: Key safe installed outside with front door key so you can easily arrange access for any tradesmen etc without you having to go to the house. All bedrooms and studio rooms have keypad locks, so you don't have to worry about keys for tenants.
The cleaner comes to the house and cleans communal areas every week. She is fully trained to test the fire alarm and emergency lighting every week, filling out fire test logbook, as well as bringing in the bins, checking boiler pressure from time to time, and capable of doing general maintenance in the house as well, which means you can easily manage this property hands off even if you’re not located in Birmingham.
Costs:
Cleaner: £520 (£10 per week)
Council Tax: £1291.35
Gas & Electricity: £1824 (21/22). New tariff estimate for 22-23 on same usage £2727.50.
Water Bill: £340.32
Broadband: £672
TV License: £157.5
Total: £4803.17
Incredibly low turnover of tenants. Due to the great location (Less than 2 miles to the city centre) and that rooms have been furnished to a premium standard with all mod cons (double beds with memory foam mattresses, private en-suite bathrooms, blackout curtains/blinds, mini fridge, privacy films on windows, Smart LED TVs, superfast fibre optic broadband >350mbs with mesh network) make these rooms hugely appealing to young professionals. Since fully refurbishing the house there has only been 3 tenants who have moved out in 18 months (1 every 6 months).
For each tenant move out I have let all these rooms within 7 days from activating the room listing to booking viewings – usually 10-15 interested people are interested and booking these on a block book viewing for 1-2 hours. This block book viewing can either be done by the current tenant in the room or ‘OpenRent.com’ do a viewing service (£36 per half hour viewing block).
Work Required per Week to Manage Property
Currently 1 hour per month.
You could also use an estate agent to manage it, but I have found for this property because of the high demand there really isn’t a need for them.
Estate agents will charge approximately 10-12% commission (so £367 per month for this house) to manage it and then approximately £500 to fill a room.
Why am I Selling?
I am just selling this one HMO property from my portfolio. Although I will be sad to see this go, I am looking to raise a lot of capital right now to buy an ecommerce business.
Post-Sale Support:
If you are a seasoned HMO investor and just want my advice with this property or if you are new to HMO property investing and want some help before you take over the reins then I am more than happy to provide full post sale support for 3 months.
Also, if a tenant is going to move out within 3 months after the sale of the house I am happy to let this room out free of charge. It is incredibly easy for this property (and I can take you through the process as well, so you are prepared for any future tenant changes).
If you have any questions, please do let me know.
EPC - Rating D