This lends an unfortunate meaning to "unlicensed" HMOs, which suggests they are somehow illegal and fly-by night. So local authorities, lenders, or owners may refer to smaller HMOs as multilets, "HMOS NOT REQUIRED TO BE LICENSED", or "non�licensable HPMOs".
HMOs are typically more expensive to run and usually require more effort and time. HMOs have different safety and security requirements than regular renters. For example, every room will require locks. HMO setup costs will therefore be more expensive than regular buys to let.
There are also some void periods. HMOs can have longer void times than traditional buy-to let. HMOs could also mean higher maintenance costs for landlords than traditional buy and let models. This could be because HMOs share common areas such as living rooms, kitchens, and bathrooms.
Traditional buy-to-let properties are typically suitable for one or more people. A single rental payment from the household would be due on a weekly, or monthly basis. The utility bills would be paid by the household. These are often referred to simply as "single-lets".
HMOs are an excellent investment. - Higher rental income. As a rule, you could expect to earn roughly twice as much rent. One example is a four-bedroom house that's let to a family for PS800 per months, and four other tenants paying PS400 each. In order to attract tenants you may charge rent including bills, which will make your costs much higher.
For a great long-term return, it is important to get the best finance deal. Reach out to our HMO Mortgage finance specialists.
You want to make a long-term investment that will yield a high return. To do this, you need to negotiate the best terms possible on your finance. For more information, contact our HMO Mortgage financing specialists.