How to find a property suitable for HMO conversion. I suggest you follow this guide;
propertyspacesolutions.co.uk in Buckinghamshire converting your property into an HMO . email firstname.lastname@example.org or call 07551756279
- First of all, Check your council website to see whether they have invoked ‘Article 4’ for HMO. What does Article 4 mean? Article 4 removes the right for ‘permitted development’ and full planning permission would be required. It may cover all or only part of the Borough. for example, Lincoln city council have included Article 4 for HMO properties within the city centre and the area surrounding Lincoln University. University Towns are hotspots for HMO’s. Therefore developers are actively tying up contracts with universities, to develop purpose built student accommodation, whereby 1st year students have to stay on campus.
- Decide what type of Tenant you want to attract. Professional people, Housing allowance people, Tradesman or home leavers. It is rare that professional people will stay in the same House as unemployed people on Benefits. Look at the Area closely and the answer will be obvious as to what type of tenant you will attract. ——–
- By using the Council HMO guidelines which can be downloaded from their website. Measure the rooms of potential properties to see if they will comply to minimum standards set by that council.
How to find a property suitable for HMO conversion.
- Successful HMO’s with high occupancy rates will offer en-suite showers. Tenants dislike having to share a bathroom. they will chose a room with en-suite facilities rather than one without an en-suite. Check to see if you have enough room to create a shower room?
- The Kitchen. For HMO’s with up to 5 tenants, the council require the kitchen to have an oven and sink. However, if you have 6-10 tenants, the council require 2 ovens and 2 sinks, with at least 1 metre of workspace between them. Is the kitchen big enough if you plan to have 6 or more tenants?
- Parking. Does the council require a minimum amount of off street parking? if so, does the property cater for this?
- Stress Test the deal. How much rent will you generate assuming an 80% occupancy rate. People move and you have to get the room ready for the next tenant. You may have a late payer, so never assume 100% occupancy income. How much is the House costing you? How much will you anticipate for running costs? Conversion costs? Letting Agency fees? Council tax and water rates/
To run a successful HMO you want to be looking for a 10%+ yield. There is a lot more work involved when running HMO properties, so you need to look for higher returns. A standard single Let property should generate at least 5%.
How to find property suitable for HMO in your area.
don’t rush it; Take your time and follow the guidelines set out above and your next HMO purchase will be a great income generator for you.
If you would like assistance in finding a suitable HMO property contact email@example.com with a brief description of what you are looking to achieve.