A House in Multiple Occupation or HMO is a property which is rented to three or more tenants. The unrelated tenants can share facilities like a bathroom or kitchen. HMO lets landlords rent the property to multiple households rather than just one.
A large HMO, also known as a HMO, is a rental home with more than five tenants. In this case, the tenants share a common toilet, bathroom and kitchen. There might be a limit to the number of stories within a building. Landlords require a HMO license to operate a large HMO. This licence will be valid five years.
HMOs may be more difficult than traditional buy-to let models. HMOs have facilities that are shared between tenants. Tenants may sometimes become disenfranchised. Sometimes, tenants may not see eye to eye and you could be called upon as a mediator.
Number crunching is essential to make an HMO financially viable. Our HMO mortgage advisors can help maximize your rental income by analyzing your proposal. Secure a great deal to make your HMO profitable. Most lenders who offer preferential rates often work with mortgage brokers.
A HMO can make you a higher profit than renting to a family. You can charge for each room separately and charge more overall. You will require a specialist mortgage to accomplish this.
HMO lenders are going to be looking at the knock-on effect of higher risks on your ability and ability to pay the mortgage.
HMOs may not generate three times as much rental income as a buy-to-let standard. You should also remember that landlords usually pay utility bills. However, even though the utility bill is approximately PS2k-3k annually, there is still a significant rental profit.