Selling a BTL, price it by yield?

StMilMo

I am going to sell a BTL property. It's in a very desirable student area and the house is in good condition, all good from the practical side of things. So I'm going to just try an online-only estate agent at first, probably something for £99 just to get on RightMove. My question is about coming up with an asking price. Rent is 975pcm on average which means a 6% yield comes about from £195,000 and a 7% comes from £167,500.

Would we think to price it somewhere between those? Perhaps start at the upper end, towards 6% yield, which I understand to be fairly acceptable?

Or should I get a local estate agent to come round and value it? I don't mind "using" them like that, but it does mean they're then on my back for months afterwards to ask if I've decided to sell it.

Thanks,

oldbikebloke

what are the actual sale prices (not asking prices) of recent similar/identical properties?

since we have no idea what your property is worth, as we have nothing to go by, no one can say if 6% or 7% is realistic.  

steampowered

I would look at the sold prices for similar properties in the area, rather than looking at yields.

Yield is not really a reliable measure particularly for a student property where you are going to have short term tenants coming and going.

[Deleted User]

Plus also 2 or 3 empty months every summer, and a refurb needed each and every year!

StMilMo

Poster_586329 said:

Plus also 2 or 3 empty months every summer, and a refurb needed each and every year!

I've had my students on 12 month contracts, and I wouldn't think to redecorate for at least another couple of years yet (probably 5 years total). I think that the horror stories about student rentals aren't really justified.

theartfullodger

Plus coronavirus & the consequent economic downturn & downside of br+X+t not looking good Is it.

Saw DIL yesterday, teaches in college, all her Italian & Chinese students gone home.  Huge numbers of foreign students now.

Caz3121

are you selling it with the tenants in situ? or will they be leaving before you market it and you will be selling with vacant possession?

dimbo61

You are selling a BTL business which should have a Very good yield if renting to students.
Is it a HMO, does it need a HMO licence, selective licence, 
Gas Safe certificate, EICR, pat testing,  
Are the rooms big enough for HMO licence ? 
Lots of other rules and regulations to running a student property.
Online estate agents ? 
Got to be joking