Are you an HMO landlord who has been sceptical about the notion that HMO properties do not appreciate at the same rate as standard residential properties? Recent data challenges this commonly accepted hypothesis. According to Octane Capital, the average HMO is now worth a third more than comparably sized residential properties. Additionally, 53% of landlords surveyed by Paragon reported no material difference in capital gain between single units and HMOs.
So, what factors are making HMOs more attractive and potentially increasing their value at the same pace as BTL properties? As an HMO landlord, it is crucial to understand these factors and take advantage of them to maximize your profits.
Firstly, the increased use of Article 4 directions by councils limits the supply of HMOs, making them more desirable to potential buyers. HMOs are now considered a high-value investment, as the demand for affordable and comfortable living spaces continues to grow. Working with an HMO letting agent can help you navigate the complex world of Article 4 directions and ensure that you comply with all the necessary regulations.
Secondly, increased professionalization and regulation mean that HMOs are being managed better than ever before, making them more attractive to tenants. A well-managed HMO is likely to attract more tenants, and this can help to increase the value of your property. Working with a tenant finder can help you find the right tenants for your HMO. A tenant finder will take care of the entire process of finding tenants, from advertising your property to screening potential tenants and signing the lease agreement.
Increased tenant demand is also a significant factor in the growing popularity of HMOs. More tenants are considering HMOs due to a shortage of 2/3 bedroom apartments, and this has created fierce competition for the best rooms. To find HMO tenants, you need to market your property effectively. Advertise your HMO on online platforms, such as social media and property listing websites. Working with an HMO marketing specialist can help you reach a wider audience and attract more potential tenants to your property.
Furthermore, the emergence of specialist lettings/estate agents that focus on HMOs has given landlords more confidence to invest in and manage these properties. If you want to advertise your HMO effectively, you need to work with an HMO advertising specialist. An HMO advertising specialist will help you create a targeted marketing campaign that will attract the right tenants to your property.
In conclusion, the increasing demand for HMOs presents a significant opportunity for landlords. However, to take advantage of this trend, you need to understand the factors that are driving the growth of the HMO market. Working with an HMO letting agent, tenant finder, or advertising specialist can help you find the right tenants and maximize your profits. If you are an HMO landlord looking to advertise your property effectively, consider working with an HMO marketing specialist who can help you reach a wider audience and attract more potential tenants to your property.