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Property Tribes travelled to Manchester to meet Punk Takiar, CEO of branded HMO portfolio, Luxome, to find our more about his property journey and business model.Punk started out in property investment in 2003, founding Luxome in 2009. Luxome operates mainly in the South Manchester area and provides high end accommodation to students and young professionals.The portfolio currently consists of 28 properties, 7 of which are currently undergoing refurbishment.As you will see from this video, Luxome adopt an holistic approach to their business and tenant engagement and wellbeing is an important part of the Luxome philosophy and service:Luxome property specification includes:
It was a genuine pleasure to meet Punk and his team, and their passion and enthusiasm for their brand shone through in every aspect of what they do. It was very inspiring to meet them and see their latest project.If you have any questions for Punk, please drop them here and he will be pleased to answer.SEE ALSO - Legal and licensing considerations / refurbing an HMO and optimising the lay-outUP NEXT - When to say "no" to an HMO?DON'T MISS - Video exclusive: Changes to HMO regulationsNOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
A very inspiring video, it's great to see someone doing this so well and caring so much about tenant welfare. All of this goes hand in hand with successful property investing.
Rural Practice Chartered Surveyor. Experienced in estate management, residential investments, planning and development and rights for utility apparatus. All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Be interesting to know whether all bills include TV licences for every tenant room?
Because of course a TV in a tenant's room requires a separate TV licence.
Also how have they managed to avoid VOA valuation as ICTB?
ICTB does not impact whilst you have students in the rooms as they are exempt from council tax.
Well of course if aiming for the student market then OK.
But of course BTR investors are nicking the traditional small LL student business .
So ICTB liabilities could easily happen.
Anyway something for a LL to consider!
I have to say, the property looks great.
May I ask how much do you charge per room for these?
We do not rent the rooms individually, but as a part of a group tenancy.
This property is rented out at around the £140 per week mark.
Re council tax - if your council decides on individual banding then this will affect lower cash flowing HMOs and people who have not gone for the best conversion opportunities. For a good cash flowing HMO, even with individual banding, the return on capital employed still vastly out-strips the return on standard BTL, several times over.I have several 6 bedroom HMOs that cash flow £20 to £25k pa. If individual banding came in (I doubt it where I am located but it is possible) this would knock off about £5k. The key thing is this: HMOs cash flow MUCH better but you have to know what you are doing and they are more work managing tenants.This is why they cash flow more, as well as being more risky (e.g council tax banding). If you don't want risk or extra work, do standard BTL. If you want a much better return you have to take risk and spend time.
Risk/Time/Expertise - Vs - Reward.