UK number: +44 (0) 20 7394 4499 | SA number: +27 (0) 12 004 2778 info@ultimatehousing.co.uk

FAQS

WHAT IS AN HMO?

HMO is the abbreviation for House in Multiple Occupation. It is a property rented out by at least three unrelated individuals who are not from one household (e.g. a family), who could share facilities such as bathrooms and kitchens. It is also sometimes referred to as a ‘house share’. A property is defined as an HMO for licencing purposes if all of the following apply: it’s rented to five or more people who form more than one household, it’s at least three storeys high and tenants share toilet, bathroom or kitchen facilities.

HOW LONG DOES THE AVERAGE REFURBISHMENT/ BUILDING PROJECT TAKE?

The average time for a refurbishment/building project depends on several factors, including the size and condition of the property and whether the refurbishment requires any structural work. Planning permission from the local council is also required in most instances. Our residential projects usually take three to six months to complete.

HOW DOES ULTIMATE HOUSING CALCULATE RENTAL YIELD?

Gross yield is calculated by dividing the annual rental income through the purchase price.
Net yield on cash invested is calculated by dividing the annual rental after all fees and costs by the net amount of capital invested in the project.

WHAT ARE THE TYPICAL VACANCY RATES ACROSS THE INVESTMENTS MANAGED?

We are currently achieving above 98% + occupancy and historically we’ve always had occupancy rates at this level.

WHAT IS THE TYPICAL LOST INCOME (AS A % OF REVENUE) DUE TO UNCOLLECTABLE RENTS ACROSS THE INVESTMENTS MANAGED?

We are very proud to say that our lost income is below 0.05% of our portfolio’s annual rental income.

CAN YOU PROVIDE AN OVERALL SUMMARY OF THE NUMBER OF AND VALUE OF INVESTMENTS MANAGED BY ULTIMATE HOUSING?

Over 80 properties with a value in excess of £60 million.

CAN YOU PROVIDE AN OVERALL SUMMARY OF THE TOTAL RENT-ROLL UNDER ULTIMATE HOUSING’S MANAGEMENT?

+/- £3 million per annum.

WHAT DOES ULTIMATE HOUSING CHARGE INVESTORS?

On a typical project, we have two fees, one to source the property and manage the refurbishment and the second is a standard management fee. Fees depend on the specifics of the property and will be determined on a project to project basis.

BASED ON YOUR EXPERIENCE, WILL IT BE POSSIBLE FOR A NON-UK RESIDENT TO OBTAIN FINANCING FROM A UK BANK TO FUND A PROPERTY PURCHASE?

Yes, definitely. We work closely with mortgage specialists, accountants and tax advisors to determine the best option for each individual investor based on their specific circumstances.

HOW DO YOU SOURCE YOUR TENANTS?

We use specialist estate agents to source our tenants. They use various specialist house share websites to advertise. Word of mouth is also a strong marketing tool.

WHO IS YOUR TYPICAL TENANT?

We like to call our tenants young professionals. They are usually between 22 and 35 years old, work in and around central London, and do not want to commit to the expense of renting their own flat.

WHAT TYPE OF TENANCY AGREEMENT DOES THE TENANT SIGN?

Our tenants usually sign a 12-month AST (assured short hold tenancy agreement), with a break clause that can be activated after seven months. The average tenant in our portfolio currently stays for 12 months.

DO YOU HOUSE ANY SOCIAL (COUNCIL) TENANTS?

No, we only concentrate on the private rented sector.

DO YOU MANAGE ANY OTHER PROPERTIES APART FROM THE HMO’S DESCRIBED ON THE WEBSITE?

Yes, we manage a small portfolio of 1 & 2 bedroom flats for friends and relatives in close proximity to our other investments.

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