In recent months, explains HMO Property Designs, has been an increasing number of property investors and landlords showing interest in HMOs or houses in multiple occupation. Though the trend is rising, having the right HMO strategy is important to stand out in a competitive market. There is no doubt that it yields more profit and revenue than single let property, but you have to be ready for all challenges that come with it.
You will have to bear extra funding like council tax, utilities, internet, and phone bills for running an HMO. And it will be possible to do all this only if you have a perfect HMO property. So whether you are a new property investor or a landlord looking to expand the revenue, find an ideal HMO property.
What Makes An HMO Perfect?
A house in multiple occupation is a property where two or more tenants live together in separate bedrooms. Each tenant pays separately, hence generating more rental yields. A perfect HMO is located where its demand is high, fulfills the requirements of the tenants, and abides by government legislation.
With the increased investments in HMO property and their increased demand among tenants, the competition is fierce. Therefore, for making your property the best out of the lot, focus on the safety, comfort, and affordability of your apartment. Also, keep in mind the following things:
- The distance of the apartment from the shops
- Safety of the area
- Availability of parking area
- Public transport links
- Types of neighbors
- Pleasant communal space
For legal regulation and other guidelines about the area, you have to consider the following key aspects.
Contact Local HMO Officer
Whether you plan to convert your own property to HMO or buy a new HMO, first talk to a local HMO officer. You can also get help from a multi-let investing company in that area. For example, you can contact HMO Property Designs for dealings in Rossendale. The local council preserves the right to enforce their licensing and HMO management rules in the local area and a guiding agent can help you with that.
It will save you time and let you know whether it is possible to get an HMO license in a particular area or not. Some Councils do not allow reverting HMO property to a single-let property, be mindful of that too.
Market Research To Find A Perfect HMO
Do proper market research before deciding to buy an HMO property. You have to consider rental room prices, demographics, and property layout to analyze if it will stand out or not. Other than this, you need to focus on five important things:
- Demand: Analyze the density of HMOs in the area and whether people are looking for such rental property or not.
- Supply: Match the number of HMOs available with the number of people looking for this facility.
- Population: Analyze which tenant types are high in that area, e.g., professionals or students.
- Yield: Analyze how much you will earn from an HMO in that particular area. It is preferable if the rental rates are high and property rates are lower.
- Competition: Make sure your rates, interior, and quality of the property are fit enough to give competition to already existing HMOs.
After finding the best property in an area by considering the above things, look for a letting agent. With their help, sourcing and management of tenants become relatively easier.