Case Study: Turning an Empty Property into Rental Income Before Renovation
Leith, Edinburgh | Pre-refurbishment letting | July-November 2022
Approx. £5,400
Gross rental income before renovation
£1,200
Per calendar month
Just over £400
Additional furniture cost
4½ months
Approximate tenancy duration
The Background
Our client had purchased an Edinburgh flat almost on impulse. It had potential, but was tired and needed substantial alterations to achieve the property the landlord ultimately wanted.
Before renovation could begin, architectural drawings, planning permission, building warrants and contractors had to be organised. HomeForce recognised that these preparations could take four or five months - time during which the property might otherwise sit empty, earning nothing.
An Opportunity HomeForce Identified
We suggested a different approach: find occupants who genuinely needed accommodation in Edinburgh for a limited period while the landlord progressed the refurbishment plans.
The landlord was understandably reluctant to take on conventional long-term tenants knowing that major works were planned. They wanted to be open about their intentions and avoid creating unnecessary disruption for anyone moving in.
Edinburgh was also introducing a more demanding regulatory framework for short-term lets, including licensing and, in relevant cases, planning requirements. Rather than assume a holiday-let arrangement would be appropriate, the priority was to find occupants whose circumstances matched the property and use a suitable tenancy agreement.
Furnishing the Flat for Just Over £400
The next question was whether the property needed furnishing. Buying expensive new furniture for a flat about to undergo major renovation would have made little financial sense.
HomeForce proposed sourcing second-hand furniture from a charity shop and supplementing it with items the landlord already owned. The additional furniture cost just over £400, allowing the flat to be made presentable at very modest expense.
The furnished flat
Finding the Right People
Using targeted social media and other carefully selected advertising channels, HomeForce found an American couple who wanted to spend several months in Edinburgh to help care for an elderly family member.
Their circumstances were an excellent match. We explained the landlord's future renovation plans, the anticipated timetable and the possibility of visits connected with preparations for the work. The couple understood the position and were happy to proceed.
Organising the Renovation
Alongside managing the tenancy, HomeForce continued to support the landlord with the planned refurbishment.
We helped coordinate the project, organising the contractors required to carry out the works and assisting the landlord with the practical aspects of project management.
This meant that the landlord benefited from rental income while preparations for the renovation progressed, with HomeForce providing continuity between the temporary letting arrangement and the subsequent refurbishment.
Rather than simply finding tenants and stepping away, we remained involved in helping the landlord achieve his longer-term plans for the property.
The completed renovation
A look at the completed rooms. The rental income described in this case study was generated before these renovation works.
The Financial Outcome: Approximately £5,400
The signed tenancy began on 1 July 2022 at £1,200 per calendar month. The occupants remained until approximately mid-November, generating an estimated £5,400 in gross rental income over four and a half months.
That was significantly above the property's conventional market rental value, according to our assessment at the time. Against just over £400 spent on additional furnishings, the income provided a valuable contribution towards the landlord's forthcoming renovation costs.
Approx. £5,400
Estimated gross rental income over four and a half months
An Exceptional Tenant Experience
The financial result mattered, but so did treating the occupants fairly. They understood the plans from the outset and subsequently left this review:
“I rarely write a review unless I receive exceptional service. In this case my experience was excellent. We rented an apartment close to Leith Walk through HomeForce. They were super organised, courteous and very professional throughout. Exceptional people really do create a great customer experience. Gavin and the HomeForce Team were, quite frankly, exceptional.”
C McCourry - Tenant
The Result
Through a combination of creative thinking, practical property management and renovation support, HomeForce helped the landlord generate approximately £5,400 in rental income from a property that might otherwise have stood empty.
From identifying suitable tenants and arranging inexpensive furnishings to organising contractors and assisting with project management, HomeForce provided joined-up support throughout the property's transition from purchase to refurbishment.
Could Your Property Be Working Harder?
At HomeForce Property Management, we look for practical, creative solutions that make the most of an Edinburgh property while respecting the people who live in it. Contact us to discuss your property and plans.