For many, who have got involved in property investing, HMOs can be mentioned and they just don't understand what exactly a HMO is. Well let me help explain exactly what a HMO is and how they can help you create fantastic monthly cashflow.
H-M-O stands for House of Multiple Occupancy/Occupation
A HMO is home to:
For me, I have always had HMOs with 5-6 bedrooms in them, so therefore have 5-6 tenants, not from the same household, who share the kitchen/living areas and often bathrooms too (if not ensuite).
HMOs are a great property investment strategy as standard residential homes can be converted into renting out rooms (a HMO) and generate a far higher monthly rental income than a standard family let home.
There are other things that you should consider when thinking about HMOs: