Good morning property hunters. Had my eyes and ears to the ground to see what tasty little property treats are about and have got a few that I will be posting out this week. This one particularly caught my eye as it is being sold with a tenant in situ. Now, the only thing missing from the agents details, is the rent that the tenants are currently paying, so a call would need to be made to them to check that out. However, this property has the potential to gross you a 6% annual return.
The asking price is £135,000 and similar properties are renting in the area for £675 – £695 pcm, even basing it on the lower figure, it’s still 6%. If the current tenants are paying less than that at the moment, then of course the yield will reflect, however I would expect it to be fairly close to my estimates. When the renewal comes up, you can agree a renewal at a market rent or re-advertise for new tenants, and then bang, hello 6% returns! Much better than any bank.
It’s fairly straight forward when buying a property with a tenant in situ, the tenancy that they have running, will continue until it’s expiry regardless of the owner and if you have a good agent managing it for you, they will be able to advise the best course of action at that point.
I’m always available for a chat if you fancy it, so come on down for a cuppa.