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> How Can You Tell If A Property Can Be Used As a
HMO? - Part 1 |
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This is an interesting one - and a question I get
asked ALL the time!
There's
basically a couple of schools of thought on this and
the simple answer is - it all depends on how much
cashflow you want to make!
Generally
speaking; when you convert a property into a HMO,
you normally include the bills as part of your rent.
Now given that bills can be as much as £130
per tenant per month, you need to make sure that you
will be generating sufficient cashflow to cover this
cost.
I
generally look at it from the point of view of rooms
being boxes - so a 4 bedroom house with 2 reception
rooms would be for me a 5 box house. 3 of the boxes
would cover my mortgage, the 4th box the bills and
the 5th box is PURE cashflow to you.
The
official definition of a HMO classifies any property
where two or more unrelated people are sharing but
this covers everything from a flat with two flat mates
right up to a 20 bedroom HMO!
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If
you're serious about your property business in
2014, you will get this report, right now and
read the report today. |
Imagine,
month after month, having dozens of £400
deposits in your bank account,with almost no
chasing the rent and little tenant support—ever.
What an easy way to earn a living that would
be! You can have that life. I'll show you how.
- Why
HMO's Are The Perfect Property Investment
- HMO's
Are Not Problem Free
- Why
HMO's Are More Than Just a HMO
- The
HMO Survival Guide
-
Managing Your HMO Effectively
- Make
Money With This Report
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Here
are some tips that I use when determining whether
a HMO is going to work or not:-
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1.
How near is it to a shop, local amenities, bus
route or any sign of life?
Its no use buying a lovely large house in a village
or a field or a suburb that is miles from the
city centre - room sharers are generally not going
to be interested
2.
Does it have enough reception rooms that I can
keep one free for the sharers to use as a communal
living area?
You don't need to do this but do you want to be
a landlord who isn't keen on maintaining standards
and isn't interested in making sure their tenants
are looked after? Would you want to live in a
10 foot square room with only a kitchen and bathroom
to congregate in - I wouldn't
3.
Does it have enough parking for at least half
of the rooms you intend to let out?
You can get away with on-street parking but only
in a quiet street where there is plenty of parking
(I have one or two where it works). Generally,
the more off-road parking you are, the more attractive
this will be and especially to those higher paying
professional tenants.
4.
Is it attractively presented from the outside?
Like it or not, a tenant is sold on the house
from appearances and first appearances count.
If you have weeds growing everywhere, rotten window
sills and paint peeling from the door - your prospective
tenant is going to think - uh oh, if its this
bad outside, what will it be like inside! |
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|
If
you're serious about your property business in
2014, you will get this report, right now and
read the report today. |
Imagine,
month after month, having dozens of £400
deposits in your bank account,with almost no
chasing the rent and little tenant support—ever.
What an easy way to earn a living that would
be! You can have that life. I'll show you how.
- Why
HMO's Are The Perfect Property Investment
- HMO's
Are Not Problem Free
- Why
HMO's Are More Than Just a HMO
- The
HMO Survival Guide
-
Managing Your HMO Effectively
- Make
Money With This Report
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Matthew Moody
About
The Author:
Matthew
Moody is one of the UK’s top HMO experts and
the founder of www.yourhmoexpert.com a website dedicated
to providing property investors with free information
about investing in high quality professional HMO’s.
He runs regular workshops and speaks at events around
the country.
He also runs a HMO management agency with offices
in Northampton, Leeds, Lincoln, Hemel Hempstead
and Colchester together with a property sourcing
and education business, and a furniture package
supplier.
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