5 Tips to Consider as a HMO Landlord

12 Apr 2019 - Peter

HMOs are Houses of Multiple Occupancy - put simply, it’s a home occupied by 3 or more unrelated people, who share common areas, like kitchens or bathrooms.

Some happy tenants

HMOs are attractive to landlords and investors because the total rent attracted by the individual rooms can exceed the rent you could achieve by renting the whole house.

We’ve learnt a few lessons managing HMOs and keeping tenants satisifed, which we’ve condensed into this blog post.

1. Know your Tenants

Before you even buy an HMO, you should do some local research on your potential tenants. Will they be professionals, students or other type of tenant?

Each of these tenant types will have different expectations and you should modify the property to fit.

For example:

Once your property is suitable for your tenants, you should ensure your tenants are a good fit for the property:

2. Hire Responsive Management

Ensure your HMO has a highly responsive property manager. By responding to issues promptly, tenants are satisfied and their tenancy length increases. With a longer tenancy length, you’ll pay less for tenant-find services have fewer void periods.

Tenancy Stream responds to issues 24 hours a day, typically within 1 hour or less.

3. Do a Tenant Welcome Talk

Once a tenant agrees to let your property, don’t just give them the keys. Follow this guide below and invest 30 minutes in a simple conversation to protect your property:

  1. Introduce your new tenant to the existing tenants, either in-person or via email.
  2. Give your new tenant a copy of the ‘house rules’ and explain why these rules exist. Ensure your tenancy agreement includes penalties for breaking these rules.
  3. Share useful advice to help protect your property - such as regularly opening windows to prevent mould, keeping an extractor fan running in a windowless bathroom and more.
  4. Demonstrate how key appliances (such as showers, ovens and washing machines) operate. This prevents accidental damage.

4. Prevention is Better than the Cure

Turning a property into an HMO increases wear-and-tear, but a proactive approach can prevent this:

5. Furnishing, Fixtures and Fittings

In our experience, investing in more durable furniture, kitchens and general appliances is worth the cost. For example:

Conclusion

If you have any questions, or just need some advice, get in touch. We’re always happy to have a chat.

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