Investing in Houses of Multiple Occupation

Houses of Multiple Occupation present great investment potential. There is always a market to rent, whether it be students or young professionals. The returns on your investment can really be great.

But you need to invest wisely and do your homework before jumping in. This is where Kingsland Estates can help you. We will look for the best properties for you to invest in, taking into consideration:

• Your budget and aims
• The location of the property
• Access to amenities
• Ability to rent in the area
• Potential rental return on your investment

So what is an HMO?

A House in Multiple Occupation (HMO) is an entire house or flat that has been let out to three or more tenants who form two or more households and share a bathroom or toilet and a kitchen. According to the definition of household, members of the same family living together in a location make one household. You need to apply for an HMO property license in order to have a property under this type of occupancy.

Why buy a House of Multiple Occupancy?

Houses in Multiple Occupation are attractive for investors for a number of reasons.

• The biggest attraction for investors in HMO property is the cash that they generate by letting their investment properties to sharers. As high as 300% of the income from self-contained houses can be generated by converting to HMO, however an average of 100 % additional income is the norm.
• With the additional cash flow, investors can further invest in property or use it elsewhere. Along with additional monthly premiums, long term capital growth is another fruit when you decide to buy a House of Multiple Occupation.
• Another benefit of HMO is that you start receiving returns even if all the rooms are not filled. Similarly, you are protected against the loss of returns in case one of the tenants leaves. It is highly unlikely that all the tenants would leave simultaneously; therefore you don’t have to suffer from the loss of total returns.

Kingsland Estates work directly with you to find affordable property which is suitable as a HMO.

You might look into the possibility of purchasing an investment property as an HMO and securing a future home in the desired area. As a Property Investor, you can reclaim the property from the tenants and convert it for residential use after years of premium cash flow. This is also something we can advise you on if need be as we have a team of experts who are available 24/7. They can guide you through the process and help you find a HMO investment property which is most suited to your budget and requirements.

Investing in an HMO

Kingsland Estates can also help you research the prospects of buying investment properties in suitable areas if you are willing to invest larger sums of money. Those such properties may no doubt be expensive, however they are worth the investment as you would easily find professional sharers who are keen to live in such desirable locations. Besides, premium services in high standard HMO property will get you premium rents.

Investing in a HMO may need higher maintenance standards and costs, however the enhanced monthly cash inflow literally outweighs any nuisance caused by more maintenance.

You can even do away with maintenance efforts and costs once you have proper system in place for managing your HMO property. Kingsland Estates can advise you on every step of the purchase process to make the best investment for your portfolio. If you are an investor willing to innovate, then sit back whilst we calculate the possibilities of buying an investment property and converting it into a House in Multiple Occupation.