11 Jan 2021

What is a HMO?

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:

  • 3 or more tenants
  • More than 1 household
  • Shared facilities (kitchen, living area, bathrooms etc)

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:

  • Wear and tear is higher as there are a lot of people in one house
  • You will be responsible for all the bills etc as it is easier to include this in the monthly rent paid by your tenants
  • There are legal regulations that you MUST adhere to (which can vary depending on the area of the UK you invest in). Please understand these before committing to any property purchase



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