#Midweek Top Tip – HMO Manual, HMO Pros & Cons

HMO – PROS AND CONS

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This week we wanted to discuss the pro’s and con’s for HMO Properties.

• Why do they continue to gain so much interest?
• Why do Investors find it challenging?
• how the trend has shifted & and what to expect in the future

The Pros

Yields

• Upto 3 x higher rental yields.
• HMO can achieve higher returns than a single BTL
• There will be more work involved but if it was easy everyone would be doing it.
• True value is located where the masses cannot reach

Available tenants

• It is more difficult for young professionals or students to afford rental accommodation especially in popular areas.
• The standard of HMO’s has reached an all time high compared to previous years and this is helping tenants consider shared accommodations.
• This was more common in students and major cities however this is no longer the case and can be found all over the country.

The Con’s

Right Location

• Getting the right location can be easy and difficult at the same time.
• In the past student areas and cities were often the best places however this has significantly changed as young professionals desire HMO’s too.
• Do your research online and offline, it would also help speaking to any agents managing HMO’s in the area you desire.

Licencing and legal requirements

• General licencing regarding HMO properties will also vary from council to council as they all have different requirements.
• Article 4 does not apply to all areas however it is very essential to understand if this is applicable to the areas you wish to invest in.
• Always contact your local planning department to find any Article 4 areas before investing.

CHECK OUT OUR HMO REFURBISHMENT MANUALS

Please don’t hesitate to contact me on 0191 491 0344 option or email me mikebell@nguhomesales.com to discuss your Investment choice or to book you in for a 30 minute strategic phone call.

NGU Property Investments

Investment Property That Will Run Itself, Letting You Do The Things That You Enjoy

Yours sincerely,

ANOTHER #MIDWEEK TOP TIP…..