Interested in starting an HMO, but unsure where or how to start? HMOs are one of the most lucrative segments of the buy-to-let market because landlords can make three times as much money renting out individual rooms as they can renting out an entire house to a single family.
I would like to share some tips that proved helpful to my journey. Getting into this particular type of property investment is undoubtedly quite intimidating, but careful planning and research will make a world of difference.
Research HMO Locations
Look into various neighbourhoods before making a purchase to determine which ones would be suitable for your ideal tenant. I found that, if you want to draw in students as tenants for example, look for a property that is close to a university. Students also usually use public transportation, so you could also look for property that is near a terminal for public transportation.
Look for the Right HMO Property
Tying into what I’ve previously said, after looking into HMO locations you should look into the right property for your needs. Spend some time looking for the ideal place. Location is crucial, but so is affordability, depending on the kind of tenant you’re trying to attract. Keep in mind that the objective of the game is to make a profit. If it will take a fortune to make a cheap property habitable, there is little point in purchasing it at auction.
With this, I hope that it may help alleviate some worries or hesitation about getting into HMOs. I would be delighted to know your thoughts on this.
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