With effective management, letting your property as an HMO, or ‘House of Multiple Occupants’ can earn you substantially more than renting to one household alone.
The below is our go-to guide for HMO Landlord’s or those considering embarking on an HMO venture – to help you get the best out of your investment.
Attracting top tenants
With growing competition from purpose-built accommodation blocks, it’s more important than ever to ensure your property stands out from the crowd.
Consider your target market and the type of people you’re looking to attract. For example, a student property may require a simple, modern interior, whereas a chic, vintage feel may attract higher calibre professionals.
We specialise in high quality HMO interior fit outs and can recommend a cost-effective solution to best suit your needs.
Getting your rent right
There’s a lot to consider when it comes to rental prices, such as: would a ‘Bills Included’ rental package be more appealing to your audience? What are other similar properties in the area charging, and are your prices comparable? Which particular aspects or features of your property mean you should be charging a little more or a little less?
It’s important to do your research, and if possible, seek some expert advice from your property manager.
Utilising attractive and engaging photography could be the difference between a property that sits on the market for months on end, and one that gets snapped up in seconds. Not only that, but the perfect pictures could allow for a boost to your rental prices.
References, guarantors and deposits
Adhering to a structured approval process can help you to select and retain the very best tenants for your property. Every tenant should be reference checked, along with their guarantors where relevant, and checks for credit, employment and previous address should also be made.
Inspection and Inventory
Inspections can be a detailed and lengthy process, but at Acara we know better than anyone that regular inspections are the best way to uncover issues and prompt preventative maintenance, that can help save you a lot of time and money in the long run.
We recommend that a formal inspection should be carried out quarterly, with regular monthly visits scheduled in to check and report on minor aspects, such as general upkeep and cleanliness, drains, gutters, windows and ventilation to name just a few.
Fire Safety & Security
When it comes to your HMO property, fire safety in particular should be at the top of your list. HMO buildings have multiple tenants and are typically several stories high, which puts them in the high-risk category.
You’ll need to work with your local council to ensure your building adheres to their particular licensing requirements, and you’ll be required to review a range of things such as escape routes, alarms, fire doors, windows, and secondary escape routes.
Maintenance, Repairs and Reporting
Skimping on ongoing maintenance can have serious consequences and could end up significantly reducing the market value of your property, meaning a similar decrease in rental value and poor return on your initial investment.
Foregoing standard maintenance tasks also causes issues when it comes to insurance, and could potentially result in claims being denied.
A HMO property manager can help to respond quickly, and rectify things with immediate effect – preventing small issues from turning into more serious problems.