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Why Use A HMO Management Service?

There’s no doubt about the advantages of renting the property as an HMO property. More tenants means higher monthly rent payments. The earning potential is great and, depending on the location the demand for rental properties can be very excessive. A property that is just a few steps away from a college such as, for instance, will be filled with prospective tenants waiting around the block.

Of course you can find two sides of each coin. As an HMO landlord isn’t an easy task. The potential financial benefits are definitely there. However, you need to put in the effort to earn your reward. There are a lot additional rules and regulations to adhere to compared to the other properties that rent out. If you’re opting for the HMO option what are the rules you must know about and how do you run your property without agents for estates? We’ll explore these issues in the following article.

A plethora of red tape

The first problem you’ll encounter is the regulations and rules that you have to adhere to. There’s a lot more bureaucracy when you allow an HMO. For instance, there’s compulsory licensing for properties that have over four tenants. However, every local council could additionally have its own license requirements as well. Be sure to know all the local licensing rules before you decide to rent your home. If you’re unsure, consult the local council. There are serious fines for operating an HMO with no valid licence Make sure you’re protected.

It is also necessary to comply with all other standards, such as regular gas safety inspections along with Energy Performance Certificates, and making sure that your home is safe to live in. However, HMOs also have additional rules for fire safety. These could include additional smoke alarms or signs in communal areas, for instance. Make sure that you are well-informed about the rules that apply to you.

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Locating your tenants

A fully-occupied HMO is a good investment. However it is necessary to find tenants first. Finding tenants isn’t always simple. If you’re marketing yourself, you must be prepared and ensure that you spread the word quick.

Many tenants, especially students and young people are likely to begin their search for a property on the internet. It is essential to be on the market as well. The biggest websites for letting like Rightmove and Zoopla aren’t accessible only to landlords who are private. Only letting agents who have been approved by the authorities can advertise on these sites. It is worthwhile to hire a letting agency to find tenants.

The cash flow must be maintained

One potential downside to HMOs is that they could be vacant for a portion throughout the calendar year. This is not a problem for students, void times are virtually always expected during summer. I say “almost” because there are students who rent throughout the year. Instead of heading home for the summer months, they’ll find an employment locally and live in their homes.

Typically, the extra revenue from multiple tenants can compensate for temporary void periods. You can also earn additional revenue by renting rooms that are empty during summer. A tourist or beach location is probably the best place for this. However, a creative marketing strategy could keep your property occupied all through the year.

Controlling the property

The biggest issue facing HMO landlords is managing their property and tenants. With increasing numbers of tenants, there’s more chances for problems to occur. Be sure that your tenants are able to quickly notify you of any maintenance issues. Be the repairs in check so that they don’t become out of control and could revoke your license. One method to keep track of repairs is to employ a property management company.

The delegating of management duties for the property will make it easier also in other ways. The collection of rent, the management of compliance, and inspections are handled. Making tenancy agreements that could be difficult in HMOs is also outsourced. This can take a lot of burden away from you. However should you prefer to be in complete control, you can handle everything on your own. Be organized and prepare for long, unsocial hours.

HMO buy-to-let property investment

There are a few disadvantages to having an HMO. It is a long working day and a lot of hurdles to climb through. However, the financial benefits of this type of investment in property could be very lucrative.