Investing in HMOs
A house in multiple occupation (HMO), or a house of multiple occupancy, is a British English term which refers to residential properties where ‘common areas’ exist and are shared by more than one household. Common areas may be as significant as bathrooms and kitchens / kitchenettes, but may also be just stairwells or landings. HMOs may be divided up into self-contained flats, bed-sitting rooms or simple lodgings.
Strictly speaking, HMOs are not the same as purpose-built blocks of flats, since most result from the subdivision of houses (often but not always large houses) designed for and occupied by one family. Some legislation makes a distinction between those buildings occupied mainly on long leases and those where the majority of the occupants are short-term tenants.
One of the myths is that you need to have a lot of money to be able to invest in HMO’s. If you’re buying a HMO – we would agree, you may require a good wedge of upfront cash. This is because you will probably need to spend some money to make sure the property meets all of the safety requirements.
However, with new techniques and strategies that we can help employ, the large costs of HMOs is a thing of the past.
Get in touch with us to find out how HMOs can bring healthy returns on investment.