Thinking about buying a place in our neighbourhood to rent out and doing some sums to see if it might work out as a good investment for our kids. I will call the housing association who would manage it tomorrow but if anyone can give me an idea of the figures tonight that would be great. Thanks
We have a 2 bed ex council flat in zone 4 that we rent out to a housing association for £628 PCM, but our contract is coming to the end of its two year term. We will most likely move to renting it privately as we should be able to get well I've £700 PCM after agent costs. Hth
Don't forget to build into your calculations a month vacant per year (when you will probably also need to pay council tax, check local council rules) and approx 10% maintenance, also any agency fees for finding tenants (usually around 10% of annual rent plus Vat) and management fees (another 7-8% plus VAT).
thanks! our local housing association have confirmed today that they have a waiting list so are offering a rental/rent collection service for no "fee" but rents are reduced by 5% or so to cover costs/risk as they offer a guaranteed rent. when compared to private rent plus management fees there is not much difference to net income in the end..... hmmm lots to think about!
that is the question! my experience of private letting was not exactly hassle free.... this HA option was appealing with the combination of tenant finder, guaranteed rent, offer of landlord training/licensing and return of flat at end of period in "original" condition. Is this too good to be true? what is the catch?