R2RSA in Brighton

Sourced are pleased to present another fantastic opportunity to take on a 5-bed flat for R2RSA in Brighton & Hove on a 5-year agreement. The unit has been fully renovated and benefits from 5 double bedrooms, 2.5 bathrooms, a kitchen/dining area and a separate reception. The property is also in a great location, being just moments away from the beach and The Royal Sussex County Hospital. The local area also consists of multiple shops, restaurants and pubs.

The unit will comfortably be able to sleep up to 12 guests. The total rent payable for the unit is £2,850 which does not include bills. The financial figures provided also allow for management costs and OTAs and the profit is net after all costs.

The unit is available on a 5-year contract. This investment will be fully managed by our managing agent, making it as hands-off as possible for you. The property will be vacant so our interior design team will furnish, set up the property and get it marketed for you. We'll also get you set up on our online platform so you have full visibility of bookings/revenue. The management fee is 14% + VAT of net revenue. This includes full management covering everything from check-ins, check-outs, cleaning and maintenance.

The total investment figure provided is based upon financing part of the furniture cost and paying it monthly to reduce the initial cash investment. We can refer you to our finance provider who will arrange this for you. In order to qualify for financing, at least one company director/guarantor must be a personal homeowner. Financing is also dependant on credit rating, financial history and length of term. Average numbers for a 3-year term are given in our figures. Alternatively, you can pay for the furniture and set-up in cash which will be approximately £13-14k (subject to formal quotation).

Pictures, a video walkthrough, location details and a detailed financial breakdown are available on request. Please note, the unit will be vacant and fully set-up by our award winning interior design team.

Sourcing fee of £4,500 inc. VAT applies.

The Financials
▪ Rent: £2,850
▪ Ongoing monthly costs (including approx. bills and furniture costs)*: £915
▪ Average nightly rate: £353
▪ Revenue at 70% occupancy: £7,517
▪ Revenue at 85% occupancy: £9.128

▪ Deposit: £2,850
▪ Sourcing fee: £4,500
▪ Interior Design, Soft Furnishings & Set-up Costs: £4,000
▪ Total Upfront Cash Required**: £11,350

▪ Monthly profit at 70%: £1,663
▪ Annual profit at 70%: £19,954
▪ Profit over 5 years at 70% (assuming no increase in nightly rates): £99,772

▪ Monthly profit at 85%: £2,826
▪ Annual profit at 85%: £33,912
▪ Profit over 5 years at 85% (assuming no increase in nightly rates): £169,559

▪ ROCE over 1 year at 70%: 176%
▪ ROCE over 5 years at 70% (assuming no increase in nightly rates): 879%
▪ Months till profit: 7