Location is not a limitation for traditional rental properties. We work with letting agents across the country who have rented properties in nearly every possible location. They've all been rented, whether in the country, city or rural.
There are also void times to be aware. HMOs tend to have longer void periods than traditional buy to rent. HMOs are more expensive than traditional buy-to let models and landlords might have to pay higher maintenance bills. This can be due to the use of communal areas such bathrooms, kitchens, living rooms and other common spaces (where available).
A House in Multiple Occupation is more profitable than traditional buy-to-let. The UK has a high rental demand and landlords can maximize their rental yields by using low-interest rates. The key to maximising your rental income is securing the right mortgage.
HMO houses can be more lucrative than regular buy-to-let investments. HMO mortgages are becoming more popular among landlords. But do you really need one? Or can a traditional buy-to-let mortgage suffice?
HMOs are considered to be more at-risk than standard BTLs. HMO tenants have a tendency to move quickly and are often unrelated, which can increase the likelihood of voids or unpaid rentals. They might be less committed and take on less responsibility for the property's care and maintenance. A tenant may be more difficult to spot if the property is damaged or has problems.
Traditional rental properties can be found in almost any location. We have worked with many letting agents all over the country and they have rented properties at almost any location. They've been rented anywhere, in rural or urban areas.
HMO Buy to Let4 bedroom semi detached house with 2 receptions rooms1 reception room converted into a bedroomRents to 5 single-working professionalsMonthly renting income per tenant = PP400Monthly renting income = PP2000Annual rental revenue = PL24,000. The above example illustrates why HMO property owners are more interested in them. The difference in gross rent income can be very significant.