HMO (house of multiple occupancy) properties have long since been regarded as the strongest performing buy-to-let asset; with high rental yields on offer for landlords. By maximising the number of tenants within the house, you’ll automatically boost your monthly income, and are likely to appeal to students and young professionals (both lucrative demographics).
If you’re considering property investment in the UK, and you’d like to learn more about HMOs and how to choose the right one, here’s a handy guide to help you.
Is There Such a Thing as the ‘Perfect’ HMO?
While some buy-to-let properties for sale lend themselves more successfully to HMO conversion, it’s fair to say that virtually any house can be converted. This is especially true if you’ve got a bit of creative vision, and aren’t afraid to invest some time and money into a renovation project.
Typically, large Victorian / Edwardian terraces work very well as HMOs, thanks to their plentiful bedrooms and urban locations. However, new build properties and even commercial premises can be just as effective too. It’s even possible to convert an apartment into an HMO, though this isn’t wise if you’re investing in a leasehold flat.
What Do You Want Out Of It?
It’s wise to think about what you want to achieve from your UK property investment. If you’re looking to generate a solid monthly income from it, then your focus should be on finding a buy-to-let property for sale that offers high rental yields.
However, if growing a portfolio is a top priority, you may want to start with a smaller (cheaper) HMO, with the intention of selling quickly and using the profits to invest in more properties. If this is your intention, it’s a wise idea to work with a property investment agent, as they’ll help you to create a successful long-term strategy.
Think Outside the Box
When they come on the market, HMO properties tend to get snapped up quickly, as they’re popular with investors. As such, you need to be prepared to act swiftly, or think creatively. Remember, it’s fairly straightforward to apply for an HMO licence for a property (though be aware that there’s different legislation involved); and that there are many houses currently for sale that are ideal for HMO purposes.
When viewing buy-to-let properties for sale, think about who you’re trying to attract. For example, students will favour very different houses to young professionals, and they’ll want to be in a different location too – ideally as close to the university campus as possible.
Do your number-crunching too. Work out exactly how much rental yield the property in question will provide – and what will happen in the worst-case scenario, if you can’t get all the rooms rented out.
The Buy2Let Shop Limited
If you’re interested in investing in property in the UK, have a chat with The Buy2Let Shop. We’re a team of expert property investment agents, and we’ll help you find the right HMO buy-to-let property for sale, with a view to maximising your returns and supporting your long-term investment plans.
To find out more about our services, visit The Buy2Let Shop website today.