Should You Buy An HMO?
HMOs (house in multiple occupation) are well understood among property investors.
These multi-let buildings come in a variety of flavors, including student housing, co-living spaces for professionals, temporary lodging for asylum seekers, and social housing.
They are frequently rented out by the room, with variable degrees of shared utilities and community living spaces.
When compared to a normal single-let Buy To Let home, there are several advantages for investors.
Many of my investment clients want to diversify their portfolios by including HMOs.
So here’s a brief rundown of some of the advantages and disadvantages…
ADVANTAGES
✔️ High return on investment and consistent cash flow
✔️ There is an increasing demand for high-quality co-living places.
✔️ Typically, void periods apply to a single room rather than the entire house.
DISADVANTAGES
❌ Property management requires a significant amount of time.
❌ Increased maintenance expenses
❌ Increased regulation and compliance
