Cambridge landlord Sam Carter is set to close two more buy-to-let deals that will push the value of his property portfolio beyond £4.5m – all before his 32nd birthday.
Carter, who runs SJC Property Developments alongside his father Stephen, has built a thriving business specialising in Houses in Multiple Occupation (HMOs). Since converting his first property into a six-bedroom shared home in 2021, the pair have grown their portfolio to 41 rooms across the city, charging premium rents to attract professionals.
“We’ve got the model and we know it works, so we’re now in a position where we’re ramping the business up,” Carter told The Telegraph.
“Our goal is to be known as the best landlord in Cambridge. We charge a premium for our properties because they are a premium product and we want to give tenants the best value for money.”
Rooms in the company’s properties rent for more than £1,000 a month, including bills and extras such as bicycles and Netflix subscriptions. Interiors are given distinctive themes – from Scandinavian minimalism to traditional Cambridge style – designed by Carter’s brother, Matt.
The secret to the company’s success, Carter says, lies in the speed and quality of renovations. Properties, typically semi-detached or detached homes priced between £400,000 and £600,000, are stripped back to brick and rebuilt as six-bedroom HMOs. This is, he explains, “the magic number” for profitability, allowing strong rental yields without always requiring planning permission.
Once converted, properties are revalued at around £750,000 to £800,000. Carter estimates that his four existing houses generate gross rent of £268,000 a year and a net income of over £85,000.
The model relies heavily on investor backing, with family and friends providing funds for purchases. Renovations are financed from the company’s own resources to avoid delays associated with staged lending. Decades of experience in construction also give the Carters an edge: Stephen’s long-standing network of trusted tradespeople helps turn properties around in just three to four months.
Carter, a former financial adviser, says the journey has been a steep learning curve but insists research and mentorship are crucial for new investors. “Do as much due diligence as you can so you don’t miss any restrictive covenants,” he advises. “It can really sting you if you don’t research the property from the outset.”
With tenant demand for shared housing near Cambridge’s hospitals and science parks showing no signs of slowing, Carter believes the future for premium HMOs in the city looks strong.
