How to get between £2k-£3k income from property – every month
In this article, we are going to explore five different ways in which you can generate between £2k-£3k worth of income – every month – from property.
Get four HMO’s and make £500 a month from each
A house in multiple occupation (HMO) allows you to charge rent by the room. By charging by the room, you’re typically going to earn more income. As an average, we see property income of around £500 a month per HMO. Therefore, get yourself four HMOs, and you’ve got yourself £2,000 a month.
You find out more about why we invest in HMO property here.
Switch to serviced accommodation
Switch the use of your let properties to serviced accommodation. This a house or an apartment that is used on a short or long-term basis, often by a corporate client. At the moment, the demand for serviced apartments is outstripping supply, says a report – meaning it could prove lucrative for you.
Serviced accommodation is normally rented by somebody who likes hotels but wants the flexibility of having a lounge to entertain guests or maybe a kitchen. It’s almost a self-catering apartment. But we don’t want to market it as a self-catering apartment as that sends the wrong message.
- For example, if someone lives in London but needs to work out of their Head Office in Manchester for three months, they’d probably opt for serviced accommodation over living in a hotel, as it is more of a home-from-home.
- Similarly, a big corporation may be having an annual week-long sales meeting in a city and needs accommodation for all their sales teams. Again, serviced accommodation may work out a more attractive and cost-effective option than a hotel.
Why not join our Serviced Accommodation Rent to Rent Academy for more information?
Get a portfolio of lets
Get 10 to 15 single lets with a positive monthly rental income of around £200 each, and you will earn the income you require. Of course, that can be quite a big portfolio to manage so is probably more appropriate for experienced investors.
Renovate and flip
Buy, renovate, and flip. Flipping properties is not actually letting them at all – it’s buying them, fixing them up, and selling them on. So, buying empty property, occupied property or dilapidated property at auction, sending in a team, having them renovated and then sticking them back on the resale market. Look for motivated buyers and listings with OIEO or OIRO on them.
Now this one will probably work slightly differently to the others in that this won’t generate you a monthly income. But if you renovate two property deals a year, you could be looking at anywhere between £24,000 to £40,000 worth of profit – which then equates to our £2k-£3k income from property.
This one is probably for you if you don’t need a monthly income but do want to make money from property.
And finally, number five – sell deals. When we’re going about our business looking for HMOs, single lets, or serviced accommodation etc., we may come across deals that may not be suitable for us, but which may be ideal for other people.
Deal packaging is basically putting deals together and then selling them to other property investors.
If you are the middleman between a buyer and a seller, then you’ll need to set up a company to do this. You’ll also need to register with The Property Ombudsman (which will include getting Professional Indemnity Insurance). You may need a data protection licence if you’re collecting and holding personal information about individuals. Plus, you’ll need to be very careful of regulations because there is a lot of legislation around AML (anti-money laundering).
For more information on property sourcing, this article from YourPropertyNetwork.co.uk makes interesting reading.
Hopefully, these five ideas have given you some food for thought on how to make a £2k-£3k income a month.
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