HMOs are a good investment. - You can expect to make roughly twice the rent if you have a higher rental income. A four-bedroom house rented to one family can be rented for PS800 per monthly, while four tenants pay PS400 each. To attract tenants, you might charge a rent plus all bills. Your costs will be much higher.
HMO licences can have additional conditions depending on the council. HMO licences may only be requested by local authorities. Without a license, the penalty for renting a licensable HMO is up to PS20,000.
HMOs are often considered more risky than standard BTLs. HMO tenants can move faster because they aren't related and have a greater chance of voids. They are less committed to the property and can take less responsibility for its maintenance and care. Tenants are also more difficult to identify if there is damage or a problem.
A large HMO, also known as a HMO, is a rental home with more than five tenants. In this case, the tenants share a common toilet, bathroom and kitchen. There might be a limit to the number of stories within a building. Landlords require a HMO license to operate a large HMO. This licence will be valid five years.
A House in Multiple Occupation could be more profitable than traditional buy and let. With low interest rates landlords can maximise rental yields because of the high demand for rental properties in the UK. A mortgage that is right for you will ensure your rental income makes the most of your profits.
A House in Multiple Occupation (HMO), is a property rented to more than one tenant. They may share facilities, such as a bathroom and kitchen. HMOs allow landlords to rent out a property to more than one household.
HMO properties can generate higher yields than other types of property, but they are also more difficult to set-up. HMO licences may be required for landlords, depending on the nature and purpose of the HMO.