Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
About time this subject was bought up & discussed.
28 years experience / high 2 figure num HMO's ( 35% profs & 65% students ), operate in Oxford- I believe im council's largest HMO landlord so I've been told- enough of blowing my own trumpet - but i think i'm qualified to comment on this one.
The past 4 years has been turbulent and that's putting it mildly, the imposed Govern changes and rules imposed hv on the market from ur single/ 2 prop L/L to operators like myself will truly devastate some people's fortunes over the next 2 to 3 years.
The proliferation of HMO courses / guru's and experts is self evident and the vastly exaggerated promises made will duly bankrupt many of the sheep who paid fortunes for info u could hv easily garnished for free.
The over saturation in HMO rooms is evident in many many towns, this coupled with the enormous extra supply of student accommodation by the UNI's themselves has led to falling rents and with the reduced demand ( Brexit being main contributor ), it's a race to the bottom.
The unfortunate who have high LTV's and small rooms crammed to provide max heads on beds numbers, will imho be the 1st to go to the wall in this impending bloodbath.
The wise will have created a product with its own USP, with minimal LTV's and room sizes that warrant the rent asked for, a 9 bed hmo with small rooms next to a 5 bed hmo with large rooms ain't necessary more profitable if the churn factor is many times higher for the 9 bed !
The so called guru's many haven't got a pot to piss in or actually own any houses themselves - the R2R brigade is their master strike of opportunity and now the chickens are coming home to roost - the economics and profitability is collapsing and they will be the 1st to bail - but u can guarantee one thing, they won't be publicising that to their sheep !
Still strong ? here. I don’t fear people who have pay £0000s to go on a course. By definition if you’d rather give your money to a guru than into your venture you aren’t going to last the distance.
Fair play to you Maz - this is one of the best posts on PT for a long time!
My experience :When speaking to working HMO tenants other than the very short termers , they invariably want to share with less people 2 or 3 , but ideally want a flat. Which given the number of new build flats is becoming more of a reality , I have had a lot of HMO tenants leave to buddy up with a friend , even another member of the HMO in which they reside to rent flats .I have heard so many tenants say they have been to view large HMO's but would never rent them as too many people. These are possibly better for the Universal credit /LHA tenants which are more management intensive and lower payers .Previously many rooms would have also been taken by Eastern Europeans but this is drying up as some return and there is a trickle of them coming
Has first 2 hmo friends move out together in 10 years - feels like I should buy a hat for my matchmaking. Agree with other comments- smaller the better. 5+ is bedsits for low income high default risk
Here is my interview with Bill Rockett or Rockett Home Rentals, the author of the original article that sparked this debate:
Bill also mentioned the importance of ensuite bathrooms for each bedroom. He was of the opinion that this is the expected norm now and all HMO residents want their own ensuite.
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**
Can't see there being many takers for this room!
Very good video here from Vicki Peers about where not to buy an HMO. She is based in Liverpool, but the lessons here apply in any area:
See - HMO in Liverpool?
Interesting read. I was wondering what peoples opinions were for owning a HMO instead of some flats, as they seem to be more hassle overall?
I have had flats and still do, but only like them when I own the freehold