HMO - House of Multiple Occupancy - refers to a property that there are three or more unrelated individuals living in the property and the bathroom or kitchen facilities are shared with other tenants.
They can be one of the best performing type of rental properties due to their high rental yields; added to this there is a lack of multiple occupancy property stock and an increasing student population. This means high levels of competition and minimal void times making owning an HMO property potentially a very attractive investment.
HMO properties are more complicated than regular property rentals and this is where Guardian Estates can help. We are specialists in HMO properties and will help you with the legal implications of owning an HMO property right through to ensuring your property is certified by the council, finding tenants and maintaining your property.
Once you have chosen to rent out your property with Guardian Estates, we will use a variety of techniques to ensure the highest possible market exposure. We use all the United Kingdom's main property portals and always.
A good understanding of the market is key if you are investing in an HMO property. Guardian Estates can help guide your decision to ensure that you choose a property in the right area for your market. At Guardian Estates we can also aid you in developing a property once it is bought to maximise your yield. We can be as hands on as you require so even if you are unable to visit the property you can be assured that the work will be done to required standard. Each client has their own dedicated project manager and can be assured that their project will be managed effectively.
HMO properties require additional features that regular properties do not. Guardian Estates can help you find out exactly what your property requires before any unnecessary money is spent. Our dedicated HMO team can meet you at your property and provide a quote for the required work. We will always be on hand to guide you through the process. HMO properties can also receive increased levels of wear and tear. Guardian Estates provide regular inspections of your property to reduce the likelihood of any issues from occurring.
Selecting the right tenants for your property is our primary concern. As a company, we go to great lengths to ensure we find the right tenant for your property. We will carry out thorough credit and referencing checks and discuss each tenancy with you before it proceeds. Thus, ensuring that you are informed at every step of the rental process and mitigating the risk of an objections to the property having an HMO licence.
Because of the nature of an HMO property a special licence must be applied for via the local council licensing department. The license currently lasts for one year – however it varies from authority to authority across the UK. Licence costs depend on the local authority and the size of the property. Renewals are at a reduced rate cheaper provided there is no lapse in cover. Obtaining a licence can be a little complicated for a first time landlord, which is where it can be helpful using a property manager like Guardian Estates.
If you're interested in any of the HMO service that Guardian Estates offers, or would like to discuss anything in more detail please contact us today.