What should a landlord be paying to furnish an HMO? There is a ballpark figure at approximately £2.5k for a four-bed HMO at £600 a room but that gets cheaper the more rooms there are. Something else you will want to consider is whether your time is best spent assembling furniture or whether you want that done for you.
Property Expert Series: Dale Wild from Pegasus Property Investments & Landlord Co.
- Part 1: Introducing Dale Wild from Pegasus Investments and Landlord Furniture Co.
- Part 2: What Projects Are Pegasus Investments Working On and Why?
- Part 3: What Is An HMO?
- Part 4: What Furniture Should You be Providing in an HMO?
- Part 5: What Colour Schemes Work Best for HMOs?
- Part 6: Is it Better to Put Up Blinds or Curtains in an HMO?
- Part 7: What Type of Beds Should Investors Use in Their HMOs?
- Part 8: How Much Should a Landlord Budget to Furnish an HMO?
- Part 9: How to Give Your HMOs the WOW Factor
- Part 10: How To Invest in HMOs
- Part 11: What Do Landlords Need to Know About HMO Licensing?
- Part 12: What Has Been Your Biggest Mistake in Property Investment?
- Part 13: What Has Been Your Biggest Win in Property?
- Part 14: How Does the Cashflow from HMOs Compare to Buy-to-Lets?
Furnishing An HMO
Amy: Can you tell me, Dale, while there will be variations regarding the number of rooms, what should a landlord be paying to furnish an HMO? Is there a ballpark figure or a figure per room?
What should landlords and property investors be looking to pay?
Dale: It does depend on the size of the HMO because the per-room price would come down if you were doing a 20-bed HMO.
But if you were looking at, say, a 4-bed, everything you need, just for the bedrooms, you are probably looking at 2.5 grand which is £600 per room. That’s including the VAT and the installation.
I know that some guys will go to the flat-pack companies. Ours come ready assembled and we install it for you.
It might seem cheaper at the checkout but there is time and there is pain involved with assembling them in your HMO.
Amy: For me, personally, I’d be a bit concerned about letting somebody sleep in a bed that I’d put together, myself, from IKEA.
Even hanging a picture on the wall, I’d be scared it might fall off. So, I’d be getting someone in to be doing all of that.
Dale: I can imagine. Put a mattress on the floor.
Amy: Yeah. So, that’s great that you come in and install the items because that’s going to save the landlord a day.
Dale: Yeah, we just turn up in the morning, the guys install it and take all the rubbish away and then away we are.
It depends on what the landlord wants or what the investor wants. It depends on their budget and it depends on how involved they are.
I meet loads and loads of landlords that are just hands-on with everything, which is great.
I’d like to be able to do a lot of the stuff that they do. They’ll do the refurb, they’ll do everything and they’re happy to spend a day or two putting furniture together.
And the results are great, so each to their own.
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