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  • HMO & Multi-Lets

    Property with Possibly 9 Rooms

    Hi guys,

    I currently have a property that has possibly 9 rooms. The bottom floor has 3 rooms with additional lounge, kitchen and bathroom. The second floor has 4 rooms with 1 bathroom and the upper floor has 2 rooms with 1 bathroom.

    I am looking at either going down the route of the HMO or letting this out to a company. I wanted to get everyones thoughts on this what would be the based the route. The HMO route will possibly generate more cash but letting it out to a company would mean less work. I am based in Birmingham with only few minutes away from the bus routes and only 5-10 minutes drive from the city centre.

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    Which ever way you go it's best to get a HMO licence on it

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    Brothel could be a good idea

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    Hi Fazsnatch,

    The HMO route appears lucrative but is somewhat complicated in terms of considerations( not trying to put you off). 

    As a starter the property will need to meet basic safety requirements, fire doors & paraphernalia, A1 smoke alarm system, adequate emergency exits  just to name a few .

    On top of that you will need to consider adequate room sizes, adequate number of facilities etc You will also need to consider your HMO market.

    In order to secure good rents you will need  good quality accommodation, even students ( no disrespect to them) are highly discerning in the modern day. You will need planning permission as your proposed development falls into the "sui generis" category ( above 6 beds).  You will definitely need a HMO licence.

    The district is really important , being close to main routes and the city is a good start but some districts are already subject to a high level of HMO competition - meaning potentially longer voids and lower rents, others are avoided by prospective tenants.

    Who's going to manage your HMO - it can be intensive if you manage it yourself . Employing a specialist management company will make things easier but it will cut into your yield. 

    On the top-side if you do get HMO investing right it can be highly productive and as you're probably well aware Bham is currently in a very positive phase of regeneration and development. 

    Hope these comments help with your decision-making process.

    All the best.

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    If you rent it to a business and allow them to sublet only do this with legal advice otherwise you could inadvertently grant them security of tenure under the Landlord and Tenant Act 1954. Also consider mortgage breaches/consent.



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    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.


    HMO all day long.... sounds like a winner.....the basic requirements are not that onerous, but make sure you do it well first time and time and care over it will pay dividends.

    As an HMO owner with several properties I know what I'm talking about. I also used to live in Brum so know the area. Go ahead, be brave but don't be an absentee landlord you need to keep tabs on it and only let to professionals no students....&  don't mix students and professionals it dosen't work. Needless to say get it licenced and make sure it is an area where you are able to obtain an HMO licence.

    Best of luck.

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    We looked at companies for our 6 bed HMO but were told we would get under half the money compared to an HMO, so a non starter. We went high spec and only rent to professionals.

    We turn away more people than we allow to view it. We've had ours 2 years now and best thing we've ever done. Not rocket science to follow the regs. We just view it as the same as owning 6 properties, with a little bit more work.

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