A HMO is a Home of Multiple Occupants, good examples offer tenants modern, affordable living in great locations. But is it an alternative worthwhile considering for investors?
A traditional HMO is simply a private room with shared bathroom and kitchen facilities, however many now offer a more “premier” product with en-suite bathroom and kitchenette to attract young professionals and students.
HMOs offer a less risky option to investors for several reasons. Here are three of the best ones:
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- 1. Rooms are usually tenanted quickly due to
high demand for affordable housing in the UK
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- 2. A tenant moving out doesn’t spell disaster as the landlord still generates
income from the remaining tenants
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- 3. HMO units are smaller than apartments, meaning what would be 3 apartments could be a 4- or 5-bedroom HMO generating a
higher monthly income
UK landlord advice: The tenancy agreement for rental properties
With higher income, higher demand and lower risk, HMOs are not to be overlooked. Positive feedback from investors and tenants has seen developers like the Heaton Group taking on more projects categorised as “premier” HMO property than ever before.
And the current trend is set to continue with media shining a spotlight on the shortage of affordable property across the country.
