What are the main problems with HMOs?

Discussion in 'HMO & Multilet Property' started by nmb, Jan 1, 2018.

  1. nmb

    nmb Well-Known Member

    There are opportunities for double digit rental yields with HMOs. I would be interested to hear about the main problems with HMOs - they cant be straight forward for that kind of return?
     
  2. Deanb7823

    Deanb7823 New Member

    I think it just comes down to decent tenancy more than anything. I know someone who has 2 HMO’s and struggles to collect rent and both have been trashed. This hasn’t put me off though, it’s something I’m looking into myself.
     
  3. nmb

    nmb Well-Known Member

    It is good to have a reality check sometimes, HMOs are not a shortcut to riches but if managed correctly they can be very lucrative in the longer term. However, expect hiccups along the way!
     
  4. Peter Davis

    Peter Davis New Member

    Hi

    There are all sorts of regulations surrounding HMO's..........I have one.

    The key thing is to try and have positive relations with the students.

    Students are bright individuals. Although you should have both a deposit and a guarantor in place, students see you as getting rich whilst they are building up debt.

    They have no long term interest in staying there, typically a year or two at best. They are young so parties are an attraction.

    I have had 2 newel posts taken out in the communal areas. Their own bedrooms are much less of a problem as they are not able to deny responsibility.

    Older students are far less trouble. I recommend final year and post grads. These students really want to do well and do not have time to mess about.

    Prepare yourself to have more hassle, more expense than a standard let...........the higher returns do not come for free!!!!!

    Peter
     
  5. Hi @Peter Davis

    How many students do you have in your HMOs?
     
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