Is HMO Property The Best Investment Choice?

The Perks of HMO Property Investment

According to Aldermore, the gross annual income for HMO property investment is dramatically higher than standard buy-to-let returns; as non-HMO landlords saw a gross rental income of £61,846 in the last 12 months, HMO landlords pulled in a staggering £120,283 - almost double.

With the standard HMO having each tenant on a separate tenancy agreement and paying their own rent, this cuts down void periods as individual tenants come and go, and means that even if one room is empty, the rest of the property is still generating returns.

The Negatives of HMO Property Investment

There are different legislations for HMO properties, which can get confusing quickly if you're not familiar with them. A property also needs to be suitable updated to qualify for this, so if you're looking to renovate a property to be suitable as a HMO, you will need to consider the financials behind this too.

A HMO license is also required, with a penalty in place for those letting a property without a HMO license in place.

It is also more work to manage a HMO property, so many opt for a property management company which is simpler but does have a financial implication.

Ultimately, there are positives and negatives to every investment opportunity, and will depend on the investor themselves as to what is the right choice.
If you've been looking into what the right investment option is for you, and want to discuss what different opportunities are out there, reach out to our team today.