HMO's are on the rise and have become very popular throughout Great Britain over recent years. With demand on the increase for affordable housing, it is no surprise that there is a constant pressure on providing housing for people in this country.
They are also a great asset to have for developers who are trying to increase their portfolio.
With that said here is four great tips to get started:
1. Research Your Target Market
Researching your area before buying a property is very important because you need to check to see if there is demand in the area. Buying a property near good transport links and big cities with a growing population is going to help to keep your property tenanted. Also making sure the area has a good employment rate is another important factor. Applying for a HMO license where there's strict licensing regulations is important, if you are to adhere to your local councils specific rules. Things like article 4, additional licensing etc are only going to make it harder for you to get your property properly licensed.
2. Getting the Right Mortgage
If you have considered a HMO as something you want to go ahead with, then making sure you have the right mortgage is a must. A normal buy-to-let mortgage will not be accepted and you may land yourself in some trouble if you get it wrong.
3. Understanding the Risk and Rewards
If done right HMOs can be a great way to have a recurring income. However, understanding the risks is an important factor you must get right. HMOs can take up a lot of your time so making sure they are managed properly is key. The cost of running your HMO can begin to add up when considering maintenance, utility bills, arrears and insurances. Finding tenants is one of the most crucial aspects to running a successful HMO and can be a stressful task if not done correctly.
4. Consider Having H&B Manage your Property For You
If you would like a professional team to manage your property and GUARANTEE you a monthly income every month then H&B Property Management is right for you. We understand all the risks and can guarantee you a rental figure each month.
If you would like more information about the services we provide click here: https://www.hbpropertymanagement.co.uk/findoutmore
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