Opting to let your property as a House in Multiple Occupation (HMO) can offer unique benefits compared to traditional rental models. An HMO is a property rented out to multiple households with shared amenities. Here’s why converting your property into an HMO might be a smart move.
Higher Rental Yield
Renting by the room can significantly boost your rental income. For instance, if you let a three-bedroom property to a single household for £1,500 per month, converting it into an HMO and renting each room separately at £550 per month could yield £1,650 monthly. Additionally, you can charge different rates for various rooms, maximising your return.
Reduced Void Periods
HMOs often experience fewer void periods. Because each room is rented individually, it's less likely the entire property will be vacant at once. You can also include clauses in your tenancy agreements requiring existing tenants to cover any shortfall if a room is unoccupied.
High Demand in Urban Areas
HMOs are particularly popular among young professionals and students who need affordable, flexible accommodation. With a persistent shortage of student housing, HMOs offer a sought-after solution. This demand can be especially high in university towns and bustling cities.
Converting Your Property into an HMO
Transforming your property into an HMO requires careful planning. Ensure compliance with room size and safety regulations, including the installation of fire doors. A license is needed for properties with four or more tenants from multiple households, though some councils may require a license for smaller HMOs.
Challenges to Consider
Managing an HMO can be more demanding than a traditional rental due to multiple tenancy agreements and tenant interactions. However, our expert management service can handle these details, making the process seamless for you.
Explore HMO Potential
Let our local experts manage your HMO for you, making the process hassle-free. Our fully managed landlord service handles every detail, ensuring you and your tenants are well taken care of.
If you would like to speak to us, please contact us through our website or contact Alders and Kane Estates directly at lettings@aldersandkane.co.uk.