Single Let Properties
Single Let Cons: •
- Income Diversification – When a tenant moves, your void period is generally 100%.
- Area & Purchase – If you purchase in a higher gross yielding area, this can actually have a lower net yield which can make you bankrupt. That’s why it’s important to buy in the ‘not best not worst areas’. This is one of the biggest mistakes most investors make when buying ‘vanilla’ single lets – basing their buying decision on the headline gross yield.
- Maintenance – Generally more wear & tear depending on which market you’re targeting so factor these into your monthly costs
- Scattergun – management can be a nightmare if your properties are spread out and not in one goldmine location. So there’s no economy of scale. And you won’t have a better understanding of tenant demand, actual sale price, who the local surveyors are, best and worst Estate and Letting Agents, refurb teams, solicitors, competitors to keep close, actual achievable rentals, best streets with highest uplift potential, and so on.
Single Let Pros: •
- Ease of Sale – The simple reality is single lets are much easier to liquidate should you ever want to exit. The potential pool of buyers is much larger along with generous financing & mortgage options. •
- Bills – Tenants are usually responsible for all the utilities and bills so no there’s need to factor these into your deal anaylser when crunching your numbers
- Duration – Tenant turnover is quite low. They usually stay longer, as they are the stage of their life where they are more settled & reluctant to move (lower voids..) •
- Ease of Tenant Management – This is another area where the burden of tenants of single lets can outshine other units •
Many families have their own appliances, so there may not be any reason to furnish the property
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