HMOs can be restricted to certain areas. HMOs can be targeted at specific tenants such students and single professionals. HMOs are often located in central areas or near major bus routes and amenities. It would be pointless to have an HMO located in a rural area in the middle-of-nowhere.
A House in Multiple Occupation may be more lucrative than traditional buy to let. Low-interest rates make it possible for landlords to maximize rental yields. There is a lot of demand for rentals in the UK. It is crucial to have the right mortgage in order to maximize your rental income.
HMO mortgage lenders may also require information about the property. Some require that the property only have one kitchen or that tenants can share a common area. Other requirements include a limit on the number of floors and bedrooms, as well as limiting how many bathrooms and other restrictions. A lender must also agree to allow you to renovate the property before you rent it. A mortgage broker can help navigate through all of these restrictions to help you find a willing lender.
Many HMOs come fully furnished. This can also be a cost. Traditional properties that are available for rent are usually unfurnished.
The location of traditional rental properties isn't a problem. Our nationwide network of letting agents has rented properties in every possible location. They have been rented in every location, from rural to urban.
Young buyers are still unable to afford a home, so the demand for affordable rented accommodation is high. You can check the local listings sites (Gumtree and Zoopla) to see how strong the demand is from prospective tenants.
HMO Valuations. Lender methods may differ in this area. Some lenders use the traditional surveyor inspection in combination with comparing it to other properties in the region. If there arenŐt any HMOs, the valuation will reflect the propertyŐs value as if it were a single house. However, this method doesnŐt account for HMOs that have multiple rental incomes. Therefore, it limits your borrowing options.