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Looking to increase the yield on your property? Converting a property to a House in Multiple Occupation (HMO) can prove to be an incredibly effective investment, while reducing the likelihood of voids, and increasing demand for rental properties.

Houses in multiple occupations (HMOs) are becoming an increasingly attractive option for many people due to market conditions and the cost of living. HMOs provide tenants with more flexibility, such as short contract terms, cheaper rental prices, and the opportunity to live closer to their work or university. It is easy to see why HMOs are the best option for many people when taking these advantages into account.

We have created a list of the most important factors to considering when sourcing the right property.

Location, Location, Location

Arguably, one of the most important factors when constructing an effective HMO is the location. It is essential to consider both demand and supply when selecting the ideal spot.

 

To maximize the desirability of a HMO property, it is best to source one close communities, central train stations, grocery stores, and other lesuire activities. As the main targets for HMO properties are usually students and professionals, choosing a location near universities and working hubs can be beneficial to increase the rental potential.

 

The Condition

The condition of a property can have a large impact on the yield of an HMO, as tenants are more likely to pay a higher rent for a well-maintained property. Ensuring the property is kept up to date with repairs is key to attract potential tenants, as well as keeping the property up to safety and health standards which is obligated for a HMO license. We covered all legal requirements for a HMO license which can be found here. All in all, investing in the condition of a property can greatly increase the rental yield, as well as the resale value of an HMO. The better the condition of the property is higher the demand.

    The Condition

    The condition of a property can have a large impact on the yield of an HMO, as tenants are more likely to pay a higher rent for a well-maintained property. Ensuring the property is kept up to date with repairs is key to attract potential tenants, as well as keeping the property up to safety and health standards which is obligated for a HMO license. We covered all legal requirements for a HMO license which can be found here. All in all, investing in the condition of a property can greatly increase the rental yield, as well as the resale value of an HMO. The better the condition of the property is higher the demand.

      Summary

      When looking to increase the yield on a property, converting it to a House in Multiple Occupation (HMO) is an effective investment. Important factors to consider when sourcing the right property are the:

      • Location
      • Condition
      • Size

      Have these important points in mind when you’re looking for your next property investment. Finally, research the rental market in the area to ensure that you will be able to attract tenants and get a good return on your investment. With these factors in mind, you should be well on the way to finding the ideal property for you.