Like any investments, HMOs come with risks and rewards. If you want insider knowledge gained from my many years’ experience in the property industry, I’ve got some insights that I’d love to share with you. Read on to discover how you can get ahead of the game when investing in HMOs.
1. Planning and Building Regulations:
- If you're planning on chopping and changing a property before renting it out, then you might need to submit a planning application. Planning requests vary by area, so it might not be necessary in the area of your intended investment, but Building Regulations Officers will want to know what you're up to. If you're looking for a fast return and don't want the risk of getting caught up in the planning process, just be aware that any changes to a property may well delay a return on investment.
- If you don't have plans to renovate a property, but it still requires a bit more than a lick of paint, then you'll need prices and quote from professionals. Architects and surveyors are an option, and you'll need more people like them if you're going to find the right balance between spending a sensible amount on upgrades while still providing tenants with a desirable let.
3. Fire Safety:
- In terms of abiding by health and safety regulations, fire is no exception. You’ll have to make sure any amendments are carried out by professionals and you'll need signs and fire-fighting tools on the premises.
4. HMO Compliance Considerations:
- As with any investment, you'll want to maximise your return on investment, but there are council-set limits on the size, number, and quality of various elements of a letting. Room sizes, toilets, living areas and utilities must all meet a set quota and standard which is crucial to know during the planning stage - make sure you’re clued up on compliance.
- People can be resistant to change for many reasons, and objections from one or more of your property's neighbouring residents is something you'll want to avoid. You can do this by avoiding sweeping changes to the property that might cause a problem. When it comes to finding the type of tenant that will fit into the neighbourhood, ask your letting agency to vet potentials on certain criteria.
- You’ll want to catch the perfect tenants for your property, but there's no better way to do the exact opposite than to furnish your let in such a way that you alienate potentials. Invest in agreeable, modern, and neutral decor and you won't go wrong.
- There are certain criteria for a property to be a HMO. You will need to be licensed, and we at Concentric can help. In fact, we can direct you with all your HMO investment concerns and queries. Our key advisors in Birmingham, Liverpool, Wolverhampton and Coventry have the know-how, connections, and insight necessary to maximise your return on investment and deliver an exemplary HMO that will serve you and your tenants for years to come.
For a FREE 16-page document on HMO investment, detailing how Concentric can help you streamline your experience and maximise your investment funds, click here.