Friday, 24 July 2015

Should you always take the highest rent possible for Penicuik properties?


We are going big in the Penicuik Property Blog today – big house with big returns.

I spotted this one and thought that it would be an interesting buy for somebody.  Also, it allows me to explain a quirk in the Penicuik property market at the moment.

Firstly to the property.  It is a large, 4 bedroomed, semi-detached house at 19 Cruachan Court which is between Tescos and the River Esk.  The house has a good sized lounge, an expansive fully fitted dining kitchen, 4 spacious bedrooms and a fully tiled bathroom with electric shower over the bath.  The decor is to a high standard – the property is in walk in condition.

The property is being marketed by our friends at Allan McDougall for offers in the region of £140,000.  Further details of the property can be found here http://www.rightmove.co.uk/property-for-sale/property-53098025.html

Now to the quirk.  The 4 bed housing benefit rate in Penicuik is £1,200 and so this property could be rented out to housing benefit tenants for £1,200.  However, if you do not want housing benefit tenants, then I could see you getting only £1,000, possible £1,050 rent for the property.  Either way, based on a price of £140,000, this equates to a healthy yield of between 8.6% and 10.3% so well worth considering.  Which sort of tenant you take come down to your risk profile.

As I have mentioned before, a couple of things to remember about 4 + bed properties.  Firstly the wear and tear on a property generally increases with the number of people living in a property so be prepared for extra wear and tear on a rental property of this size.  Also, the number of people looking for 4 + bed properties is less than for, say, 1-2 bed properties so it may take a bit longer to rent out a property of this size.

We hope you find our posts useful.  If you want some advice on this property, another property you have in mind or anything else property related, come and see us in our office (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).

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