I imagine that most of you reading this will already have picked up on the rent. It is currently achieving £85.00pppw which actually includes the utility bills too.
In my opinion, this is underlet, especially with the ever increasing price of energy.
I believe that without the utility bills included, this property should be achieving at least £85.00pppw which would give an annual rent of £26,592.86, and therefore a gross yield of over 8%, which in the current market is a good yield.
Another great benefit to this buy to let property is its EPC rating of D. Whilst this may not be much of a benefit now, come 2025 there are new regulations coming into force where having a rating of D would mean less cost to meet these new regulatory demands (What new regulations?).
According to the Energy Performance Certificate, by carrying out the EPC Inspector's recommendations, the EPC rating can be brought up to a B.
The agents states, 'It is our opinion the layout could be relatively easily changed to create six more evenly sized bedrooms by making better use of the basement rooms and turning the two first floor bedrooms back into one room, subject to any relevant consents.'
This sort of re-investment can only go towards ensuring a higher rent is achieved on the property.
Also, as the property is currently let on individual tenancy agreements until 8th July 2022, some on fixed term contracts, some on rolling contracts, it would be a wise decision to introduce some stability into the renting of this property by ensuring any future tenancies are worked on a joint basis, to a group of 6 tenants that already know each other, rather than individual lets.