HMO’s can work well and HMO’s can also
crash and burn.
aim is to ensure that you are one of the prior mentioned
and that you invest in HMO’s safely, wisely
Buy in the right location
This is the first key point to cover – get it
wrong and you risk your entire investment. I hear
so many tales of investors who want to run a HMO in
a village or a rural area – or worse yet are
mis-sold an investment that is just 15 minutes too
far for a student to stagger back to after a session
down at the pub.
sure to buy in a central area with close access to
amenities and transport.
sure you identify the demand
Do some test adverts to make sure that tenants actually
want to live in the area where you are buying. There
is nothing worse than buying in an area where nobody
wants to live. Make sure you get at least 3-5 calls
per week minimum in order to fill a 4-bedroom HMO
– any less than that and either you are pricing
yourself out of the market or you’ve decided
to do some testing in December or August.
Don’t skimp on the refurbishment
Most landlords get this wrong again and again and
again. Make sure you are not skimping on this as a
tenant faced with a property that’s had a recent
lick of paint and attention has been paid to items
such as doors, carpets, kitchen and bathroom outfitting
– will be much more likely to take this than
a property that shows signs of little care or attention
being paid to it.
is the little things that count. Try bright white
– you’ll be amazed at how different it
makes any room feel!
Get the best possible
furniture you can
I sometimes despair of HMO’s landlords. Everybody
is paying an all inclusive rent and what this means
is that everything is included and will be forever
– unless the landlord decides to go down another
route or single let his house. So why do landlords
spend so little on rubbish cardboard chipboard furniture
that falls apart within 5 minutes of putting something
in it?! I just don’t get it.
a little extra using real wood furniture in pine,
oak or wood style and you’ll find that it lasts
for 5-10 years plus! I still have furniture now in
my HMO’s that looks as good today as it did
5 years ago when it was installed – and its
built to last.
it may cost a little extra but it will be worth it
in the end.