This weeks latest video sees Samuel delve into deciding which property investment model Multi-Lets (HMOs) vs. Single Let is most beneficial.
In the case of Multi-lets (HMOs) one of its biggest deterrents as Samuel explains is the expensive nature that it takes to set up a HMOs such various set up costs involving which can range from health and safety equipment to standard furniture. In order to begin to get on the HMO property ladder it will take the very minimum of £35K. Having a solid management structure in place is vital to having a successful HMO Samuel recommends not managing the multi lets yourself but instead finding someone with a strong management skill set that will do the day to running of the HMO’s.
The positives that come with investing in a HMOs is the ability to receive multiple payments of rent from each resident which will clearly be more financially beneficial than receiving one single rent payment from a single let. With a variety of regulations already in place in the HMO market there is no worries regarding any additional legislation.
Single let’s are bit more straightforward than HMOs and will have the ability to be managed in-house and not outsourced like HMOs. For anyone that is a first time property investor and wants to make their first move onto the ladder purchasing single lets is more than ideal as they are easy to purchase and don’t require as much money to get started as multi lets may require.
A mark against the single lets market when in comparison to the multi lets is that level of income received will be significant lower as you’ll be recouping rent from only one tenant. As Samuel explains during the later part of the video removing single lets from his current vast property portfolio won’t hinder his finances as much as if he were to lose any of his multi lets. This is due to number of payments generated from HMOs compared to single lets.