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AGENT'S DETAILS


Salford HMO Portfolio

For sale: POA|House, Residential

PROPERTY DETAILS

FOR SALEPOA
ADDRESSSalford HMO Portfolio
TYPEHouse, Residential
TENUREInvestment Opportunity, For Sale Freehold
POSTED ON10th July 2020

DESCRIPTION

The Property Advantage are delighted to offer a high-quality Salford HMO portfolio to the market which consists of 4 back-to-brick refurbished properties and 19 rooms in total.

Each property has benefited from an extensive HMO development to include kitchens, bathrooms, wiring, boilers, decoration, carpets as well as addressing any maintenance work.

The current rental income is close to £95,000 at full occupancy and is on average £450 pcm for the en-suite rooms and £400 pcm for a standard double and there is a program with the current letting agent to increase rents by £25 pcm per room over the remainder of 2020, increasing the rental income by up to £6,000 PA.

Property breakdown:

1. 5-bed HMO with 5 en-suite rooms converted in Jan 2018

2. 5-bed HMO with 5 en-suite rooms converted in Jan 2019

3. 5-bed HMO with 4 en-suite rooms converted in Jan 2018

4. 4-bed HMO with shared bathroom converted in May 2018

Income breakdown:

1. 5 x £450 pcm = £2,250 pcm or £27,000 pa

2. 5 x £450 pcm = £2,250 pcm or £27,000 pa

3. 3 x £450 pcm and 2 x £400 pcm = £2,150 pcm or £25,800 pa

4. 2 x £450 pcm and 2 x £400 pcm = £1,700 pcm or £20,400 pa

Total when full - £8,350 pcm or £100,200 pa

There has been a change of managing agent and therefore there are still a couple of en-suite rooms at £425 pcm but there is a scheme underway to increase these to £475 pcm which is closer to market rate for the area. We expect the actual gross income on day of completion to a new buyer to be close to £100,000 still.

Costs

For each property total bills are around £350 - £400 including council tax, gas, electricity and internet. A breakdown is available.

Income
Income breakdown:

1. 5 x £450 pcm = £2,250 pcm or £27,000 pa

2. 5 x £450 pcm = £2,250 pcm or £27,000 pa

3. 3 x £450 pcm and 2 x £400 pcm = £2,150 pcm or £25,800 pa

4. 2 x £450 pcm and 2 x £400 pcm = £1,700 pcm or £20,400 pa

Total when full - £8,350 pcm or £100,200 pa

There has been a change of managing agent and therefore there are still a couple of en-suite rooms at £425 pcm but there is a scheme underway to increase these to £475 pcm which is closer to market rate for the area. We expect the actual gross income on day of completion to a new buyer to be close to £100,000 still.

For each property total bills are around £350 - £400 including council tax, gas, electricity and internet. A breakdown is available.

Features
Four HMOs in Salford

High Demand Rental Area

All Refurbished Since Jan 2018

19 Rooms in Total

14 En-Suite Bedrooms

Potential Income £95,000 + PA

10% + Gross Yield

2% + VAT Buyers Fee Applies

LOCATION

Location: Salford HMO Portfolio

Eccles (0.9 miles)

Salford Crescent (1.5 miles)

Patricroft (1.7 miles)

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