10 Ways to Guarantee a succseful HMO.
Updated: Nov 3, 2018
Do your Research
Investing in a HMO is generally considered to be for your more experienced "Property Investor" However with the right research there is no reason why anybody can't be successful with this Strategy. Knowing what type of standard your Tenants are looking for will save you a lot of money and guesswork, E.g professional Tenants might expect a high finish and a lot of Bedroom Space Whereas a LHA tenant may want something completely different. Before buying your HMO researching what is already on the Market will also give you a great idea as to how you can add value to that area, which may result in you being able to charge slight higher Rent by offering something that isn't available already. Checking Spareroom for 10 Minutes every other day would be a good start to giving you an idea of your chosen Market.
Again, this will require you to do some research which may not necessarily be the most exciting thing. However If done correctly this could see your HMO turn into a fantastic cash making machine, If rushed and done wrong sleepless nights ,void costs and nightmare tenants will be the likely result. A great way to quickly narrow down the demographic in a certain area is StreetCheck. Once you have found out the type of tenant profile you want using StreetCheck will instantly tell you if the area your looking is a good fit or not.
The Pros and Cons to En-suite rooms are endless.
Installing an En-Suite could be the touch that separates your Property from the rest, Giving you queues of potential Tenants. In my opinion the costs involved with installing en-suites probably aren't worth the reward. Most modern day Tenants usually see this as a luxury rather than necessity.
Choosing to go cheap here most certainly isn't the best. Recent statistics have shown that the first things Tenants look for is “WIFI”. Make sure you install a premium Broadband connector with more coverage than needed for the property of your size. Ensure you have an unlimited Data package to prevent extorniate bills come months end.
Whilst the Bedrooms dont need to look like something out of a scandinavian showroom, Buying bright new bed sheets and adding quirky photos to decorate your Property will give it a luxurious feel. Tenants are more likely to treat your property with more respect the newer the furniture.
Be creative with each room in the house, adding a personalised touch to make it feel more of a home rather than a guesthouse. Adding things like plants and personalised cups with the tenants name on will help keep retention with your tenants in the long run.
This is more common sense than anything , However you would be surprised by the amount of properties with cream carpet in the bathrooms. Make sure all flooring is waterproof in any room with utilities.
To get the most out of your HMO you will need to maximise every inch. Buying beds without underneath drawers , Utilising under the staircase, Cellars for Bike storage etc. Installing the right size kitchen to keep all the tenants groceries in order.
All costs reduced are added to your profits!
Installing things like smart metres will allow you to control the heating for your property remotely. Of course this is the primary responsibility for the tenants however running a HMO is very costly without heating being left on all day whilst empty. A great landlord friendly option to choose would be Inspire they are relatively cheap and easy to use.