When it comes to HMOs you need to think about your preferred tenant profile early in the process. There are plenty of different types of tenants to consider. Whether it’s professional, student, local housing allowance or social housing tenants each comes with their pros and their cons that you are going to want to weigh up in your strategy.
In the world of HMO investors today’s topic can be somewhat controversial. It’s the question of communal spaces and whether or not you should include a communal lounge in your properties. It is obvious that converting an existing lounge into an extra bedroom is going to increase your potential yield. But, in our opinion, by doing this you are incurring a hidden long term cost and loosing control over the tenant profile that your property is going to attract.
When it comes to designing the space in your HMO you should be putting the needs of your tenants first. You don’t want them falling out over access to facilities. The ideal arrangement is 1 bathroom to every 3 tenants but this is not always possible. Health and safety regulations typically allow for a ration of 1 to 4. If in doubt as to how many bathrooms you need in your HMO we advise speaking with the local HMO officer to discuss the property.
It’s a question of balance. When we’re looking at HMO property we are always on the lookout for houses of between four and six bedrooms. Of course how many bedrooms you should be looking for depends on your strategy. HMOs provide great rental yields and of course the more bedrooms you have the greater the rental yield. Too few rooms and you might not be able to cover the costs but too many, in the wrong location, and the property may prove be difficult to manage or fill.
If you’re thinking about converting a property into an HMO you’re going to have to think hard about layout. Today we’re going to be looking at the installation of en suite bathrooms and more specifically at whether or not it is worth sacrificing some of that precious bedroom space to have them included in your HMO design.
Everybody knows that houses of multiple occupation (HMOs) can give you a fantastic return on investment. This of course is true. HMOs give great rental yields and are cash flowing in a way that can’t be matched by other buy to lets. But, you’d be wrong in thinking that every HMO is a gold mine. Here we look at 5 critical mistakes that investors tend to make with this type of property and look at how you can make more money with multiple occupancy housing.
As property developers we often talk about adding value to our investments. Often what we mean by this is renovation work undertaken to increase the worth of the property at sale. Today I am going to look the issue of adding value slightly differently. Focusing only on HMO property (houses of multiple occupation) I examine four key things that can be done to add value in such a way as to increase rental return and boost your day to day income as an investor.
Learning how to invest in property is a minefield. TV programmes like ‘Homes Under the Hammer’ and ‘Grand Designs’ are all about the glitz and the glamour of property development. Getting onto the property ladder, home ownership, becoming a landlord, starting a property portfolio are all great things to do with your money but these TV programs don’t show the half of it.
When you are out viewing your next potential HMO investment (house of multiple occupancy) you want to be thinking hard about room sizes. Firstly you need to think about whether the bedrooms are a double or a single (or something in between). You need to make sure the kitchen will fit the needs of your tenants and you need to make sure that the lounge will seat everyone comfortably. If you get everything right then you will find tenants faster and they will stay for longer.
Here I want to share with you 5 steps to a smarter property investment strategy. These are 5 things I wish I’d known about before I started investing my own money in property. 5 things that would have saved me a significant amount of time and stopped me from wasting cash on under-performing investments.
At Property Investments UK our property consultants are here to help. When it comes to investing in property you need to see the house but this isn’t always possible. If you don’t live in the area in which you want to invest, you can’t find the time to attend a viewing or you just need an expert opinion then we are happy to conduct viewings on your behalf and provide you with photos, videos and of course we’ll tell you exactly what we thought.