hmo finance tsb
HMO landlords pay utility bills, except if the property has been converted into flats and the title deeds were sent to the land registry.
An HMO's running costs are usually higher and require more effort and time. An HMO will have more safety and security guidelines than a regular buy-to-let. Each room will need locks. An HMO setup cost will be more expensive than a regular buy-to-let.
HMO properties could be for sale, offering attractive "100%+ gross yields". You wouldn't mind a piece of that! However, HMOs can have very low gross yields. These costs include council tax, insurance, utility bills and management costs. Rent arrears are also included. An HMO might yield a return of 8-10% per year, while a single-tenancy buy to let would earn 4-5%.
HMO landlords pay utility bills, except if the property has been converted into flats and the title deeds were sent to the land registry.
Before you invest, get in touch with the HMO licensing officers at your local authority. Before you make any investment, ensure that you know the requirements of your area. These could include minimum dimensions for kitchen and living space, kitchen equipment, bathroom facilities, number of toilets, showers, firewood, and others.
A House in Multiple Occupation is a property that is rented out to multiple tenants. These tenants may share common facilities like a kitchen or bathroom. An HMO allows landlords the flexibility to rent multiple properties to tenants, rather than renting a single property to one household.
What returns can I expect from an HMO
HMO mortgage rates can be more expensive than traditional buy-to-let mortgage products. HMO mortgages are more competitive because of the smaller number of lenders. HMO loan lenders will have higher rates and fees. However, HMO income should be enough to cover mortgage, utility bills, maintenance and other expenses.