Prior to going onto a Short Term Rental contract the property was rented at £750 per month with the client after 10% management fee with VAT on the fee, receiving a monthly payments of £660 plus a number of extra charges like tenant find fee, renewal fees etc which roughly came to around £500 annually. They like a lot of people already had most of the items to turn the, already furnished Let, into a short term rental, with the only significant purchase being a £350 Television to set the property up.
We supplied the Linen and after the first clean it looked great. Over 6 month period after our management fee the average pay out the client received was £1,663.
There were extra monthly costs TV Licence £13.25, Rocket Fibre £26.50, Council Tax £164.25 and energy bills which averaged at £171.83 including some of the higher months November and December.
After all the calculations were done, they worked out that they were £7,542.16 better off or in terms of yield it increased it from 5.66% to 14.25%