What makes the perfect HMO? The answer here is quite simple. It is all about the layout of the house and the sizes of the rooms. Of course, these are not simple things to change in a house so today we are going to be discussing exactly what you should be looking for when you are out viewing property with a mind to invest.
Most investors know that houses in multiple occupation can make superb investments. HMOs supply rental yields that can’t be achieved with your standard buy to lets and in the right areas, the demand for affordable, flexible housing as offered by multi-let properties has never been higher. But, as with all things, there are downsides as well. Today we weigh up the pros and cons of investing in houses in multiple occupation.
With the returns on investment, they deliver it’s easy to see why houses in multiple occupation (HMOs) have become so popular over the last few years. The demand for affordable housing is increasing exponentially in most large towns and cities and there is currently a lot of pressure on the housing market to supply what’s needed; namely, cheap and flexible living possibilities for a variety of different tenant types.
Save time and money on your next HMO refurbishment project simply by fostering the right kind of relationship with your refurbishment contractor. Communication, of course, is key, as is a detailed schedule of works where each development phase is signed off on completion. Most importantly, however, you want to be visiting the site when you can. Problems that are identified early on cost a lot less than problems that only become apparent later down the line.
The truth is that not every house is suitable for use as an HMO property. Whether it’s bedrooms or communal spaces, room sizes matter and there is best practice to follow not least of all regarding the fundamental matter of keeping your tenants happy and the property fully habited. So, stop wasting time viewing properties that are not going to work by setting out some rules about exactly what you’re looking for before you start your search.
Let’s face it HMOs are pretty popular these days and that means there’s more competition in the market, prices are higher and deals are harder to find. As ever the way to get the edge on the competition is being able to do your research properly. In today’s video, Rob looks at researching an area in-depth according to five criteria. Yield, demand, competition, supply and population.
Government rules for houses of multiple occupation can be a bit of a minefield. Landlords ask us all the time about how they can be sure that they’re meeting HMO regulation head on. The good news is that your local HMO officer is there to help and as simple as it sounds a phone call to your local authority is all it will take to get you on the right track.
Reduce costs and increase your profits as a landlord by making your house in multiple occupation (HMO) more energy efficient. By just making two small and inexpensive changes to the property you will significantly reduce your utility bills and add to your bottom line. But, it’s not all about the money. These days it’s every landlord’s responsibility to make sure that their properties consume as little energy as possible.
HMOs are different to standard buy to let properties in that regulations regarding fire safety can be more complicated and are often more expensive to implement. There are good reasons for this. For example, in an HMO there are going to be more internal locks than in a family home and the tenants might not even speak to each other that often. But don’t worry. Fire regulations tend to be nothing more than common sense and your local HMO enforcement officer is there to help.
A question that comes up a lot with regard to furnishing houses in multiple occupation for professional tenants is whether or not to include a TV. We feel that providing a TV for the lounge is necessary if only to encourage your tenants to mingle. Providing TVs for the bedrooms is expensive and typically unnecessary as most tenants will have their own and if not then they’ll have laptops or tablets they can use.