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  • HMO & Multi-Lets

    5 or 6 bed HMO

    I'm doing up an old house at the minute that I'd planned on putting in 5 people. However, knocking a door through & renovating an outhouse would allow for an extra 6th bedroom (Im ok for additional cooking arrangements/bathrooms that would be needed).

    Im not sure what to do as I've 4 bed & 5 bed HMOs & these seem to work well in terms of having a homely house share rather than people locking themselves away. It would mean £300 per month extra income (against extra outlay) but I dont know if larger HMOs are a really big jump up or not. Id really like your views/experiences

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    Keeping it at 5 is more of an appeal to a prospective tenant. One of the key questions they would ask you is "how many people are living in the house?"

    Personally, I try not to encourage share living area as that can be a source of frequent disagreement. My advice would be that you go for the 6 so far as you have enough appliances and storage in the kitchen.   

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    4 room is slightly easier to let than a 5 and 6 may be a little slower but an increase of 3,600 pa will cover a lot!  We get about 380 a room for 5 bedders and the capital cost per  additional room of up to say  20k is still a very good return.

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    Yes, I would think that people may be put off with larger numbers of people & obviously there's the pressure of filling voids. Extra income is attractive & the businesswoman says max out the opportunity, but I'm dithering about it. Can I also ask if you also favour ensuites? I've 2 shower rooms planned, I don't want ensuites.

    If I did the extra bedroom I would put in another shower room to serve downstairs bedrms. My target is overseas workers (nurses, technical/scientific) ideally all employed by the same firm so I try to create a homely atmosphere

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    We have a 6 bed and don't have any issues renting rooms. We also haven't had any bad issues with tennants. However we are very fussy and we turn away more than we show.

    I would strongly advise againt en-suite as councils are now cottening onto the fact they can get you re-rated and each room becomes rateable as a separate entity. I am aware of one person whose rates went up 3 fold because they put in en-suites. Now paying 5400pa instead of 1800pa. There have been several threads on here about this.


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    We have a 6 bed and don't have any issues renting rooms. We also haven't had any bad issues with tennants. However we are very fussy and we turn away more than we show.

    I would strongly advise againt en-suite as councils are now cottening onto the fact they can get you re-rated and each room becomes rateable as a separate entity. I am aware of one person whose rates went up 3 fold because they put in en-suites. Now paying 5400pa instead of 1800pa. There have been several threads on here about this.


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    Our modus operandi is to provide an hmo where the only thing the tenants share is a large kitchen and the garden. All rooms are en-suite. This work well as the house is very peaceful and quiet all day long and that is exactly how our professional tenants like it. If what you provide is attractive, you will have less worry about voids.

    You can see an example of what we provide on our website darlnikgroup.com/galleries

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    That's pretty impressive, I guess in a larger hmo in particular ensuring harmony is everything. Yea the ensuites may be needed

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    Be careful about en-suite a as some LAs then start to band each room separately for council tax and everything then because unworkable financially.

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    true, we havent got that happening here yet but anything to generate cash would be attractive to them!

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    I think it's an equation of 2 factors:

    1) How much extra can you earn with an extra room vs. extra investment? (i.e. how fast do you break even)

    2)How big are the rooms and communal areas.

     All my HMOs are 6 bed to avoid planning but to maximize the number of rooms. Rooms are a decent size and communal areas are good. I never had a problem of people saying it's too many people. There are renters out there who feel 3 is too many, but I have a feeling the sweet spot is between 4 and 6, 7 or 8 becoming too big, but hardly any difference between 4 or 6. As long as people have big enough rooms to stay in their room if it's too packed, or not to overcrowd the lounge, it should not be a problem.

    And then it's all comes down to earnings, really. 



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