We keep commenting that the headline statements and figures used by some agents and vendors to lure unsuspecting buyers are often misleading and occasionally totally false.
The month’s moan is about net rental yields for the HMO sector. Several times in the past week I have been asked by people why our net yields after all costs are around 8% p.a. when they have been told by other parties they can get 12%-15% p.a.
The reality is that if ALL costs are included, and the landlord maintains the property correctly for the tenants, the net yield will not be 12% plus.
Nevertheless, when it comes to competing with other developers/agents and headlines and promises, we have decided to fight fire with fire.
From now on, we are going to say 15% p.a. and also say that we offer free Christmas hampers, membership of the Risqué Gentlemen-Only Club, along with… Okay, perhaps not.
The problem is that it is easy to promise things, much more difficult to deliver them.
As with any business, there are always enough issues to deal with without adding to them by making false promises and having to deal with the consequences afterwards.
Some would argue I should stop moaning and not mention this. Unfortunately, as I have gotten older, I can’t resist having the occasional rant, but I promise this will be the last for this year (well, for a few months anyway).