Eager to profit from your property? Converting your house into a HMO might be the money-making investment avenue you’ve been searching for! To find out whether your property can be transformed into a high-yielding HMO from the experienced property investment experts at Mistoria Estate Agents, simply carry on reading!
Can I rent my house as a HMO?
In many cases, a house can be rented as a HMO – either on a room-only basis or as a whole property that’s shared by a group. However, there are some rules that you will need to abide by in order to rent the house as a HMO. While the exact regulations differ depending on whether the property is located in England, Scotland or Northern Ireland, a property is typically considered to be a HMO if it’s being let to several tenants that are not part of the same family.
Moreover, it must be the place of residence for at least three tenants (forming more than one household) with shared facilities such as the kitchen, toilet and bathroom. Plus, if you plan on renting your property as a HMO to five or more people, you will also need to acquire a HMO licence. To find out whether your property requires a HMO licence, we recommend contacting your local council.
How much rent do you get for HMO?
The exact amount of rent you can get from a HMO will naturally vary depending on its location, as well as the number of rooms and amenities it comes with – to name just a few important areas of consideration. However, according to Urbanist Architecture, a HMO property can boast an impressive minimum 12 per cent yield with an average 15 per cent realistic gross yield.
Unlike a standard three-bed buy-to-let property that you might rent out for £1,000 per month to just one household, a three-bed HMO property can be let for £500 per room, per month. This results in an additional £500 per month. While the management fees may be greater for a HMO than a buy-to-let property, this extra income can make HMO conversion more than worth it.
HMO investments and lettings at Mistoria Estate Agents
If you’re eager to get involved in a new kind of property investment, then why not get in touch with our friendly and knowledgeable team at Mistoria Estate Agents Cheadle?
Thanks to decades of collective experience in the sales, letting and property investment industry, we can provide expert advice and guidance on a wide variety of property investments.
To discover how you can start your HMO property portfolio, or to discuss other property investment opportunities, don’t hesitate to give our team a call on 0161 519 9554. Alternatively, you can send us your enquiry in an email using the address cheadle@mistoria.co.uk or fill out our convenient online contact form.
Based on Church Road, our Cheadle location is always eager to accommodate any curious passers-by, so please feel free to pay us a visit during our opening hours. However you decide to get in touch, please remember to include all your basic contact details so that a member of our team can get in contact soon to discuss your investment requirements further.
