The Opportunity

Our client owned a small property portfolio comprising two residential properties and one commercial unit.

They were looking for their next investment and wanted to focus on strong long-term yield potential rather than simply buying another standard buy-to-let property.

A 3-bedroom terraced house in Birmingham was identified with the right characteristics for a supported living strategy.

The property was agreed at a purchase price of £220,000.

The Challenge

On the open rental market, the property would typically have achieved around £1,100 per month.

While this would have produced a standard buy-to-let return, the client wanted a more attractive yield and a longer-term income profile.

The challenge was to identify whether the property could be positioned for a more specialist tenant type and whether the required refurbishment could support that strategy.

Our Strategy

Kinetic Money advised the client that the property could be suitable for lease to a registered social housing provider.

Rather than treating it as a conventional rental property, we helped the client consider how the asset could be adapted to meet the needs of the supported living sector.

A refurbishment programme was carried out, including specific alterations required for the intended use. The works cost approximately £25,000.

Once completed, the property was taken on a 5-year full repairing and insuring lease by a registered social housing provider.

The Result

The supported living lease increased the rent from a typical market rent of around £1,100 per month to £1,800 per month.

This created a significant uplift in rental income while also giving the client the benefit of a longer-term lease structure.

Key Outcomes

• 3-bedroom terraced property acquired in Birmingham

• Purchase price of £220,000

• Refurbishment and alterations completed for approximately £25,000

• Typical market rent would have been around £1,100 per month

• Property leased to a registered social housing provider

• 5-year full repairing and insuring lease agreed

• Rent increased to £1,800 per month

• Rental income uplift of approximately 64%

• Stronger long-term yield profile achieved

Why This Matters

Not every investment opportunity is maximised by following the standard buy-to-let route.

In this case, the property itself was relatively straightforward, but the strategy made the difference.

By recognising that the property could suit supported living, advising on the appropriate route, and helping the client position the asset correctly, Kinetic Money helped unlock a substantially higher rental income than the open market would typically provide.

The result was a stronger-yielding investment with a longer-term lease structure and a clearer income profile.