16 Oct En-suites Get You Better Tenants
At Bespoke Bathrooms we work with a range of clients, from private home owners to professional landlords. We recently were talking to a seasoned property investor and he told us “En-suites Get You Better Tenants”. His advice is that having en-suite bath or shower rooms can have a significant impact. In fact they can help you get more rent, reduce void periods and attract a higher quality of tenant.
This investor invests mainly in HMO’s (House in Multiple Occupation). Which means that he rents out individual rooms rather than the entire property. This can be a very good approach to property investing, especially if you can stay living in the property yourself. This is because you can earn up to €14,000 per year tax free. Under the Revenue Rent-a-room relief if you rent out rooms in your main residence you can earn €1160 every month completely tax free!
Often the type of property that can make a good HMO investment is typically an older, larger property. These properties tend to have the space and scope to add value by re-configuring to add extra bedrooms. I realise that this can conjure up images of unscrupulous landlords turning every cupboard into a room. Its not these type of settings that we are talking about. But instead a property that perhaps has scope for an attic conversion. Or one with 2 very large bedrooms that can be reconfigured to make a 3rd.
In these examples our property investor friend has found that if you can fit in en-suite facilities. These rooms can then definitely attract a better caliber of tenant. I suppose it stands to reason that if the accommodation is of high quality then it would be more attractive. It is easy to see that someone would pay a bit extra each month for their own private bathroom, rather than having so share with somebody else.
Taking the example of a property where you need to add in 2 En-suites, this could typically cost you €10,000. But with the Rent-a-room relief lets say you could then rent these out for €450 per month each. You would be able to make back the cost of the En-Suites within less than a year. Then they would be fully paid off and the value added to property. En-suites get you better tenants so you will often find that rooms rent faster with them. In addition tenants will be happier and stay longer. This means you will have less void periods in your property.