The HMO property market in the UK is buoyant, typically offering high returns when compared with traditional lets. Provided the property is registered and complies with legislation, this type of investment must not be overlooked. HMO’s can work for most tenant profiles… student, professional, social housing and LHA. Obviously the dynamics are different, however the underlying factors are the same. Maximise the return from utilising all habitable bedrooms.
Tenants (in particular students) like this style of shared living. Rents are split equally, utility bills are shared, the lifestyle created is often enjoyable and sociable whilst above all, they tend to live like a family.
If you are considering HMO as a strategy there are many important factors to consider. Costs, bills, maintenance, repairs, noise, wear and tear, licensing, legislation, tenant rights, mortgage, conditions and so on. However, if you get it right, the rewards are strong. Without doubt the area, type of property, condition, licensing restrictions have to be key considerations before buying.
The Northern Powerhouse Cities offer great potential due to the high level of students and young professionals looking to rent. As licensing restrictions are in place, the future value of a good HMO can be high, thereby offering passive income and equity growth. We have many under management!