HMO is a special class of property from a renting viewpoint. It does require specialist skills, but the rewards can be significant. So, it is worth putting in the effort to understand what it takes to create and run a successful HMO property.
You need to understand if there are relevant industries or activities in the area which will support your HMO enterprise. There is also the issue of correct demographics in the area which will impact whether or not it will be beneficial to create a HMO out of your property. There is also the legal element of getting planning permission from your local council to convert a normal residential property into a HMO. Please check your council’s website for any reference to Article 4 in the ward where your property is located. This needs to be established before you venture out on you property search or refurbishment project to create a HMO.
Managing a HMO is not just about your business acumen and person-to-person interaction skills. you also need to stay on top of the legal requirements imposed on such properties by the local and central government. At the very least, you need to understand the definition of a HMO. Most people fall flat on this very first step. To be fair, there is such a myriad of definitions and explanations that one cannot be blamed.
Then there are the following areas one needs to be familiar with –
- Room size requirements
- Electrical and Gas safety essentials
- Fire Doors
- Communal area calculations/measurements
- Mortgage company notification
- Insurance company notification
- Leasehold property restrictions
- Your management contract wording
Your business skills
Then comes your ability to secure the correct level of services to attract the right set of ‘customers’ for your HMO. This includes the following –
- Furnishing quality
- Utilities provision
- White and Brown goods standards
- Broadband quality
- Listing your property and advertising (Photography included)
- Communication with potential tenants
- Where to find your ideal tenants
Feel free to get in touch for any advice on HMO or Single Let property management from our team.