Pros of being an HMO landlord

There are a lot of pros to being an HMO landlord. You probably already know that given you’re reading this article. So, let me break it down for you.

HMOs offer exceptional financial benefits

This is the main reasonanyone invests in an HMO. It’s probably exactly why you’re reading thisarticle. The prospect of generating passive income whilst sipping a mojito inthe Maldives sounds pretty good to me too. When it comes to HMO properties,rental yields can be up to 3 times higher than with single lets. Convinced yet?I am…

HMOs streamline Your Portfolio

Because the yield is so much higher with HMOs, you don’t need to have a gigantic portfolio to have a gigantic income. See what I did there? Having fewer properties with more rooms means you’ll save money on property management and marketing fees. Ultimately, HMOs allow you to make more money with fewer properties.

It’s a buoyant market

Gone are the days when HMOs were reserved for students. Flexible accommodation is in high demand right now, and this will only continue to rise. Making a big investment is worrying if you’re new to the property industry. Fortunately, HMOs aren’t as susceptible as dips in the market as other buy-to-let properties.

They help spread the risk

HMO landlords have a lot more income security. They aren’t dependant on one tenant. So, if someone falls behind on rent, they have numerous other sources of income. Whereas single let landlords are at risk of losing a lot of revenue in the same scenario. In other words, HMO landlords don’t have to put all of their eggs in one basket and probably sleep a lot more peacefully at night.

Things to consider

Unfortunately, being an HMO landlord isn’t all sunshine and daisies. Having lived in an HMO myself, I know things can get a little messy. Literally. Students are gross. But, as I said, you can easily market your HMO to attract young professionals instead of that bunch.

The dreaded HMO licence

Before you can start raking it in from your new investment, you’ll have to acquire an HMO licence from your local council. An easy way to clear this hurdle is by investing in a property that already has a licence. Or, by researching your local market to see what areas will be easier to crack. Ultimately, getting an HMO licence can be a pain in the neck, but there are plenty of ways to make this easier. Getting a HMO license is almost like going through a tick list when setting up the property to ensure it meets your local councils criteria. Whilst this can be daunting at first providing you get the council involved at an early state it is relatively easy to comply.

High tenant turnover

If your HMO is occupied by multiple unrelated tenants, you may experience a higher tenant turnover. But, don’t be discouraged. With a great HMO marketing strategy, you can easily stay at 100% occupancy. In fact, it’s never been easier. We offer affordable HMO marketing and specialise in finding the perfect tenants for your specific property. So luckily, you’re in the right place. Find out more about our HMO marketing here.

At the end of the day, there are always things to consider when making a new investment. However, given the positive state of the HMO market, now is the time to do it.