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Believe it or not, HMO’s are becoming increasingly popular, be it with private landlords, social housing as well as student accommodation. Looking at student accommodation in particular, HMO’s are outsmarting luxury studio flats as they are half the price for tenants and cash cows for landlords because of their higher profit margins, making HMO’s a win- win situation.  There is the additional benefit of the flexibility involved for both the landlord and the tenant through the short and longer-term contracts available.  

However, the main goal here is to have 100% occupancy, so it’s essential to advertise your available rooms in the best places! Take consideration into the timing in which you place the add as most look a week before they are moving so a surge in activity and interest will happen within this time,

 

1) CHOOSE A GOOD WEBSITE TO MARKET YOUR HMO

More recently, we’ve found facebook increasingly useful to fill our HMO’s fast! Word of mouth and buy and sell groups are being a big help. However, this doesn’t mean to say you should rule out openrent, spare room, gum tree etc… in fact, Spareroom, has additional benefits of providing a ‘’free room rental index’’ which allows you to see the demand for rooms in different locations across the UK.  You can place your advert where it can be filtered by tenants so it is a refined search, be it non-smoking, pet free and whether you want to advertise a student or a professional tenant. And Openrent has some fantastic bonus features too such as tenant referencing.

2) PICK A GOOD LOCATION

You should research using different channels for example Zoopla, Google, Spareroom and Home for information regarding HMO competition, demand, average room rentals, vanilla yield and market activity such as Value change to properties. Property investments UK suggest making a spreadsheet inputting your chosen locations and research into category fields including yield, demand, supply, competition and population for each location. In a recent survey by ourselves, 100% of our tenants said that location was important to them!

Other ways of marketing your HMO would be to ensure you include features such as; furniture, superfast broadband, TV(s) – either in communal area or in each room, you’d also want to ensure you have a communal area. A lot of tenants rent HMO are there for work reasons and are new to the area. A fully furnished communal area can be all the difference.

To keep happy tenants and not be bombarded with work orders make sure you have everything sorted before the tenants arrive or you may see them leave if they have to deal with continuous problems.

3) HAVE ALL DOCUMENTATION IN ORDER

Make sure you have all documents in order well in advance, this will speed up the process when marketing the property and give tenants reassurance that you are organised, and the whole experience is going to be a good one! Some of the paperwork you will need:

 

– HMO License (if required)

– EPC

– Gas Safety

– Electrical Safety

– Floor Plan

– Building Regs

 

MORE TOP TIPS

1) En-suite rooms tend to let quicker. A number of our tenants said that this was hugely important to them, to have their own space when showering.

2) The professional manner in the way you reference your tenants reflects the type of tenants you will have in your property.  Make sure you carry these out so you don’t have any risky tenants or financial issues with your tenant which can be a nightmare!

3) It is essential inventories are listed and photographs are taken of the whole HMO in case money is needed to be taken out deposits and there. You could go and invest In an app that will take an electronic documentation of inventory and supporting photographs.