HMO advantages - A guide for landlords
Our guide for landlords
Houses in multiple occupations or HMOs are rental properties that have become popular for landlords over the years and if done correctly and within regulation, HMO property investment yields can be very satisfying. HMOs also enable you to offer multiple people a chance to affordable accommodation collectively.
Want to know more about HMO advantages?
Read our guide till the end, and you will understand why we suggest HMO property investment.
1) Higher rental yields
HMOs are occupied by three or more tenants that make up for more than one household in a single property. As a landlord, you will earn higher rental yields over traditional buy-to-let properties. Sometimes, it can be as high as three times.
From the HMO property, the landlord receives constant and more income.
2) Higher occupancy
Due to economic changes, there is greater demand for shared living accommodation. The trend will remain robust for some time as the uncertainty will prevail. HMO is an affordable rental option for tenants across the UK. So, gear up landlords to reap HMOs' benefits as tenants are seeking cheap rooms to rent.
3) Rental income is not affected much by the vacancy rate
Even if one tenant moves out from the property, you will continue to earn rental income from other tenants. Also, you can find a replacement for the vacant room without hampering your significant passive income.
4) Good income prospective
If you are a landlord or property investor, multi-tenanted HMO property offers good income prospects. However, you would have to comply with regulatory compliance issues and building maintenance to ensure general standards for your tenant's health and safety.
5) Lower cost of maintenance
Unlike buy-to-let property, HMO property landlords have to re-decorate a single room and not the whole property when there is a vacant room. This reduces maintenance costs in a single hit.
6) Convert unused room into income generating source
Suppose you have a new room like a study or a second sitting room in your HMO property. In that case, you can convert it into more income-generating bedrooms whereby kitchen, bathroom, toilet, and lounge can be used as a standard by all tenants.
We assist landlords with a more hands-on property management approach.
In regards to disadvantages, issues can arise with property management and maintenance. Here at M Estates London we take on full responsibility of both, offering complete support along the way so landlords can rest aside knowing their property is in the best hands. We offer tailored services from side management to whole project and property management.
You will earn a guaranteed rental return under the guidance of experienced property managers and letting agents.
If you are a landlord in South East London, looking for rapid growth on your investment this might be perfect for you. Here at https://www.mestatesltd.co.uk/ we will find the best option in the current housing climate that suits your property portfolio.
Our property management services extend beyond finding tenants looking for decent quality furnished rental homes at affordable rents.
Contact us today for more detailed information.