Introduction HMO’s have the added advantage of not only producing a much higher income than the same property let as a single let but the ability to be valued not only on their ‘bricks and mortar’ value i.e. the traditional method of valuing a building but on their income known as valuing on yields or ...…
What is the difference between HMO’s and Multilets? Each lender has a different interpretation of what a HMO is and what a Multi let is. The word ‘Multi let’ is generally more acceptable to lenders. It is often a question of degree. E.g. if each room has its own facilities i.e kitchen & bathroom it ...…
I have great sympathy with the new property investor of today, especially the conscientious ones who try to research the business. There is so much more information out there on how to do it. When I started there was nothing. Understanding and absorbing all the different opportunities would take ages:-UK or abroad? Which country? Which ...…
Landlords may be unaware of a new trap created for us in the Housing Act 2004, that of unknowingly becoming a HMO landlord through the tenants deliberate actions. Once a property is let the landlord has very little control over the tenant. Should the tenant(s) change their relationship with the person they live with or ...…
An easy way to obtain property is to use lease options. Offer the owner a long term rental and include a right to buy, we’ll discuss this more later. Options never existed in the residential field until recently, though I did two lease options in 1995 before I even knew they had a name. Lease ...…
The steps that follow reveal the secrets to successfully converting and running HMO’s. 1. Find the right property As long as the layout of the property suits you being able to split it into units, there are no major considerations in choosing a property in which to convert into an HMO. Most council officials do not ...…
In order to run a successful HMO business it`s essential that you know your rights and responsibilities as a landlord so that you can provide your tenants with the best possible environment. In this article, we`ll take a look at some of the rights and responsibilities associated with being a HMO landlord. HMO stands for ...…
I have, for a long time wrestled with the point of the fire safety precautions e.g. fire doors, fire alarms etc., required by the Local Authority Housing Standard Departments (HSD) for Houses in Multiple Occupation (HMOs). Apart from blatant risks , namely, leaving cans of petrol in the hall and the insignificant costs such as ...…
The sad fact is that very few people who consider investing in or converting property to HMO’s actually ever start. Why is this? Well it seems they are put off by the type of tenants it is perceived live in HMO’s, legislation, licensing, fear of enforcement and the cost of complying. As you will soon ...…
So if you can obtain property for almost nothing, there is an increasing demand for HMOs and the bureaucratic restrictions are loosening, can there be any downside? The bad news Well those who know me will tell you Jim always has a ‘but’ and this has not changed, for 2011! (i) Tenants The major problem, which ...…
