HMO
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Welcome in HMO world
Dive into the fascinating world of HMO properties – a unique asset class that brings numerous benefits to both owners and tenants. With the right knowledge and the help of experienced professionals, your regular single-let property can transform into a profitable HMO, opening an exciting new chapter in your investment journey. Let us guide you through the intricacies of HMOs and see how we at Aven Home can lead the way.
Is your property working as efficiently for you as it could ?
What is HMO?
A House in Multiple Occupation (HMO) is a property rented out by at least three people who are not from one ‘household’ (e.g., a family) but share facilities like the bathroom and kitchen. It’s often called a ‘house share’. However, an HMO is more than just a property—it’s a vibrant community, optimized space, and a solid source of income. By renting out individual rooms, HMOs can generate higher rental income compared to traditional single-let properties. But due to their specific nature, they require specialist knowledge and adherence to certain regulations.
The HMO as a potential
Let us assume that you have a three-bedroom property and you are renting out the entire house for £700 per month. Now, imagine that you have the same property, but it is transformed into an HMO, and you rent out each room for £400. This would give you £1200 in total. Once we account for the bills that you pay, we can estimate that you would have a clean £900 from your HMO each month.
After a year, the total income from:
Single let – £8,400
HMO – £10,800
Which amount would you choose?
Furthermore, how quickly would your property generate £50,000 from letting?
Single let ~71 months (almost 6 years)
HMO ~55 months (around 4 and a half years)
This is where the saying “time is money” truly proves its worth.
Your property - Your potential
Remember, the number of rooms is just one part of the equation. Various factors can influence how effectively your property generates income. The location, spatial layout, and even the possibility of creating additional rooms – all can significantly contribute to your earning potential. And the best part is that transforming your property to meet all HMO regulations may be simpler than you think. We are here to assist you every step of the way. Get in touch with us to discover how we can help optimize your property for lucrative HMO rental.
Accelerated Growth
With higher rental income, an HMO property can help you achieve your financial goals faster, translating to quicker growth of your investment portfolio.
Maximized Returns
As the owner of an HMO property, you can maximize your rental returns by renting out individual rooms instead of the entire house.