It’s 40% of gross rent, but 14% return on capital employed, and that’s when it’s leveraged with a 75% mortgage.
Looking at resources for landlords, 14% is realistic [1]. Housed in multiple occupation are a fairly high risk investment compared to standard rental properties or to index funds—the landlord is liable for the mortgage and running costs whether or not it is tenanted.
Often landlords use lettings agents, who take 10-15% of gross rent. It’s quite a lot of work—when tenants aren’t aligned with the purpose.
It’s 40% of gross rent, but 14% return on capital employed, and that’s when it’s leveraged with a 75% mortgage.
Looking at resources for landlords, 14% is realistic [1]. Housed in multiple occupation are a fairly high risk investment compared to standard rental properties or to index funds—the landlord is liable for the mortgage and running costs whether or not it is tenanted.
Often landlords use lettings agents, who take 10-15% of gross rent. It’s quite a lot of work—when tenants aren’t aligned with the purpose.
https://urbanistarchitecture.co.uk/hmo-investment-how-to-increase-your-rental-income/#:~:text=When compared to standard buy,life of luxury in retirement.