How to make money with HMO’s

What is a HMO?

A HMO is a house of multiple occupancy. It’s a property in which 3 or more people live and usually, this happens by having three separate tenancy agreements.

Learn more about HMO’s and how to run a house of multiple occupancy successfully by watching the video. 

 

What’s good about HMO’s?

They can make you a LOT of money. If you just rent out a house the traditional way, you’ll need a lot of houses in your portfolio before you can become financially free. John Raybould’s HMO’s make him an average of £1200 per month each, that’s pure profit.

What’s John’s top tips for HMO success?

  1. Look in the right areas and know how to find them
  2. Take lessons from experts such as Samuel Leeds and his team
  3. Know the rules and regulations

 

What are some rules and regulations you need to know?

Article 4 means you can’t set up HMO’s without getting planning permission – this is the rule in some cities and boroughs. In non-article 4 areas, you can get any house and set it up as a HMO.

Licensing! You don’t need to license a HMO if it’s got less than 5 occupants. If it’s more, you obtain it from the council by applying online – it’s not difficult but it needs to be done. The council will come and check if the house is fit for purpose, for example each bedroom has to be a minimum of 6.52 square metres. They will run through their check list and assuming you don’t have a criminal record, you’ll get your license.

There’s more! Learn about HMO’s in this video and then share it.