Investing in HMOs can be great but a lot of people don’t know the additional income they are able to make through HMO’s. Single let can earn you £12,000 per year on rental income where an HMO can more than double that and give you an income of around £30,000 a year.
People that are afraid to convert their properties from single lets to HMOs are losing out on an incredible amount of money. To gain the most out of HMOs you’ll need to make sure that the location is near the city center. The original structure of the property will need to be in a good condition and purchased at the right price. If you can get it BMV even better.
It’s worth keeping in mind that when converting your property into an HMO you will require a license. These can cost between £500 – £1200 and can last up to 5 years. Recruiting an HMO specialist to manage the property is something that Samuel suggests.
When you’re handling your own HMO they can become time-consuming especially the running of day to day operations. If you decide to take on a second property or already have more it can become a lot.
So having a management team that is close by to take over the daily running of the property would be ideal for any investor.
Following the simple rules HMO investing can become a lot easier for you:
4+ Let-able rooms