As regular readers to the Leeds Student Property Blog will know, I try and pick the best opportunities that come to the market and suggest ways in which an investor can maximise yields, often by adding rooms or refurbishing to a high standard.
This month, I've come up with something slightly different - a property that you should not invest in.
I'm often approached by landlords who've bought a student house in Leeds and are looking for an agent to manage it for them. On many occasions, they've unfortunately bought the wrong house or in the wrong area (or even worse, both).
This for me is a classic example. It's advertised as a being let to three people, with the potential to let it to four. The advert goes onto describe it as having four double bedrooms. It's on for £189,500 with Purplebricks.
Now, Hessle Road is a great location - very sought after by students due to its proximity to Brudenell Road, the Hyde Park Picture House, Sainsburys and the 15 minute walk into University. But these houses are two bed properties, which on this occasion someone has shoe horned four bedrooms into.
If it were my house, I'd make both bedrooms en-suite and remove the bathroom on the ground floor making the living area bigger. If done at a high spec, you'd probably get £100 per room per week, so £10,400 per annum. So at the asking price that'd be a 5.5% return, which for the general residential market isn't bad - but as student landlords, we're looking for double digit yield. Right?