buying a business

High income yielding IOM property business

New To Market

Overview

  • Location
    Isle of Man
  • Sector
    Services
  • Relocatable
    No
  • Asking price
    £1,345,000

Description

The £1,345,000 asking price includes full freehold to two substantial IOM properties which are already converted and fully licensed as HMO's (consisting of over 30 existing licensed rooms). Freehold to an additional workshop and garage linked to one of the properties may be available by separate negotiation.

The opportunity

It is rare to find a HMO with all the appropriate IOM Government certifications in the Isle of Man and yet here we have two for sale. By combining both these adjoining properties, together with some subtle internal modifications to create one large HMO, any purchaser could easily increase the existing rental yields substantially.

General property condition

Both properties are in good order and both carry appropriate licensing and fire regulation sign offs. Recent renovations have been undertaken and both businesses operate to high standards and undertake regular maintenance programmes to ensure the rooms are always to acceptable standards.

Both these properties have been in family ownership for over 20 years and have received appropriate investment over the years.

Consistent returns 

Due to the ongoing shortage of affordable housing and long local authority waiting lists in the Isle of Man both businesses have been close to fully let for the duration of their 20 year plus operation generating excellent cash flow.

However retirement planning means that the owners now wish to look for offers from professional investors or existing HMO of faciities operators who are looking for a unique opportunity to continue these very profitable businesses.

Summary of business proposition

  • Freehold to two substantial adjoining HMO properties
  • Asking price £1,345,000 - combined yield 10%
  • Scope to increase the existing yields
  • Ability to utilise more rooms to enhance yield further by re-purposing existing family living space
  • Both HMOs have been fully tenanted long term
  • Most tenancies paid direct by DHSS
  • Both HMOs are in good cosmetic order with CCTV in common areas
  • Appropriately certificated as HMO properties
  • Turnkey long-term high-income generator
  • Would suit HMO investor, private investor or facilities or property management business

This is a unique opportunity to acquire a very secure income stream from two mature HMO businesses. 

Financial information and other supporting information about the opportunity is available subject to Non Disclosure Agreement (NDA).

Facts and figures
  • Freehold to two substantial adjoining HMO properties
  • Over 30 licensed rooms currently
  • Combined yield 10%
  • Scope to increase the current yield
  • Ability to add more rooms by re-purposing existing family living space
  • Both HMOs have been fully tenanted long term
  • Most tenancies paid direct by DHSS
  • Both HMOs are in good cosmetic order with CCTV in common areas
  • Appropriately certificated as HMO properties
  • Turnkey long-term high-income generator
  • Suitable to HMO investors, private investors or a facilities or property management business

Thinking about selling?

if you are thinking about selling or ready to sell then let’s talk! We are happy to have an initial consultation to talk about what the market looks like and what the demands are for your type of business and take it from there. Everyone has different reasons for selling and our service is bespoke to allow for all of those scenarios. They could be retirement, ill-health or a planned exit strategy.

I have a business to sell
Thinking about selling?

Without hesitation, I would work with them again, and would recommend them to others.

See all testimonials

Sounds good? Get in touch.
Mike Lightfoot, Senior Business Manager