HMO (House of multiple occupancy)
Are you thinking about investing in HMO* properties?
Here at Joseph’s we love to keep our finger on the pulse of the housing market because we know the industry can change very rapidly indeed. Recently we have become aware of the quickly rising trend towards developing HMO’s, or houses of multiple occupancy, which are on the rise because of the chronic housing shortage and the continuing demand for accommodation. Not being a company to back away from housing trends, we have done our research and developed a new programme for our customers which we will outline here.
Joseph’s are now able to offer a comprehensive range of packages to help our customers to develop their own HMO. We can help with all aspects of the project from full input, using our very own build team and trusted contractors to a partial input, and all of which can be tailored to our customer’s individual requirements.
Is it worth investing in HMO’s?
We believe it is, and here’s why:
- HMO properties (also known as shared houses) have the potential to return higher rental income compared to buy-to-let properties.
- Multiple tenants pay individual rents which help investors achieve better cash flow and higher returns on their investment.
- Catering to multiple tenants rather than singles means HMO properties can be much more resilient during times of economic depression.
- Void periods (empty rooms) are typically shorter which reduces financial impact on landlords.
- A potentially more stable investment due to the strong demand for HMO’s, especially in urban areas.
- HMO properties tend to attract a diverse range of tenants such as students, young professionals or those who are simply looking for affordable accommodation. This diversity often leads to an increased demand.
Are there any drawbacks?
Owning an HMO property comes with quite a few responsibilities for the landlord, some of which are outlined here:
- Health & safety requirements, licensing and fire safety.
- Compliance with HMO regulations.
- Needing additional time, effort, and investment compared to standard buy-to-let properties.
- Managing multiple tenants and dealing with any problems that arise.
- Maintenance of the property.
- Advertising and administration.
So where do Joseph’s come in?
You can benefit from our extensive experience and allow us to complete the whole project for you. That means a package where we can plan, design, build, tenant and manage your property for you, leaving you free to pursue other interests.
It all starts with a phone call so give us a call to discuss your needs and we’ll be happy to guide you through the process.