Back to: Our model explained
Cash (Flow) Is King
Poor cash flow will kill your business quicker than you can imagine. Despite the fact that landlords reported an average void period of just 2.7 weeks in 2013, more than a quarter of landlords only break even or run at a loss, according to National Landlords Association.
The reason is because they bought without knowing how to maximize cash flow. There are lots of ways to achieve great cash flow, one of which is to rent individual rooms, as opposed to the whole house.
The thought of renting "multiple rooms" may sound scary to you. It probably conjures up images of run down bed sits and overcrowded HMOs. But in fact that couldn't be further from the truth.
We don't rent to students, we provide high quality accommodation for the professional (working) tenant market. By understanding fully how the professional room let culture works we can dramatically increase income and reduce voids periods at the same time.
Renting to this rapidly growing market also eliminates a lot of the headache associated with student lets. Over time we've tweaked and perfected the professional room let model to maximize income, we know how to increase income significantly.
Any investor that chooses to rent on a whole house basis or does not understand the new rental culture will fail to make anything close to the returns we achieve. Our franchise partners can now earn almost three times the income of a typical buy-to-let investment.
Become a franchisee and learn everything you need to succeed in property.