15 August 2016
15 August 2016,

When searching for buy-to-let property for sale, many landlords are tempted by HMO property investment opportunities. Running an HMO (house of multiple occupancy) provides the chance to maximise rental yield, by having several tenants in the one property.

However, successful management of an HMO requires know-how and dedication. If you’re considering becoming an HMO landlord, here’s a few key questions you need to ask yourself before committing.

Property Investment Opportunities – Questions You Need to Ask

  1. Do you have the money? It’s possible to get a mortgage for an HMO property, but you’ll still need to have some cash available for a deposit. You’ll also need to have money kept aside for unforeseen incidences, such as broken boilers or leaking pipes.


  1. How do you intend to manage the property? If you’re intending to manage your HMO property by yourself, you need to be aware of the level of work involved – it’s a demanding job. Make sure that your family understand the commitment involved, and ask friends and family if they’re able to help out in any way.


  1. Will you use a letting agent? A letting agent makes the whole process a lot easier, but of course, you’ll need to pay them a set fee for their services. Make sure you do the necessary number-crunching before signing up, as you need to make sure you’ll still make a good profit after paying them.


  1. Can you take on some tasks yourself? If you’re good at DIY, you may be able to fix certain issues yourself. For example, if you’ve got decorating skills, you should be able to cosmetically improve the property to remove signs of wear and tear. Work out how much time you can realistically devote to these types of tasks.


  1. Do you know what sort of property to look for? There are plenty of investment properties for sale on the market; but not all are created equal! Some will produce a higher rental yield than others; and some may produce better profit from capital growth. If you’re not sure what to look for, talk to a property investment agent to get some advice.

The Realities of HMO Property Investment

Running an HMO is a great way to maximise rental yield. By having more tenants, you’ll be effectively increasing your rental yield by a substantial margin.

However, it’s important to be realistic about being an HMO landlord, particularly if you’re planning to manage the property yourself. It takes a lot of work and dedication, and for some, it can be a full-time job; particularly if you’ve got more than one property in your portfolio.

Make sure you do your research before looking for buy-to-let properties for sale. For further advice, it may be worth attending a property investment seminar.

The Buy2Let Shop in Bromley

If you’re looking for investment properties for sale, and you’d like some expert advice, talk to The Buy2Let Shop. We’re a team of specialist property investment agents in London, and we’re here to help you to find the right buy-to-let property for sale for your requirements.

We also hold regular property seminars, designed to provide valuable information about the current property market. To find out more, simply visit The Buy2Let Shop website today.

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