In today’s lesson, we cover a range of tenant profiles including professional, student, benefit claimants, social and more-broadly, HMO tenants.
There are benefits to each tenant profile however the most common kind of tenant in the UK, by far, are professional tenants.
In this video, we will be going through the benefits that each kind of tenant can bring to a project.
There isn’t a rule-of-thumb here. There is no such thing as the right or wrong kind of tenant.
But there are differences and it’s important to be aware of the variables, including those in the table below.
| Sourcing | Tenants | Management | Yields | Financing | Exit |
| ✅ | Professional | ✅ | 7% | ✅ | ✅ |
| ✅ | Student | ✅ | 8% | ✅ | |
| ✅ | Benefit | 7% | ✅ | ✅ | |
| Social | ✅ | 10%+ | |||
| HMO | 10%+ | ✅ |
Remember, this is just a starting point.
The numbers are far from absolute and individual examples will vary in their outcome.
This is more of a snapshot of the kinds of yields and services that an investor could expect to receive or require, given a specific tenant profile.
Don’t worry, if this seems confusing, we will be going into more detail on this later in the course.