Before you make any investment, speak to the HMO licensing officer at your local authority. Before you invest, make sure to check the local definitions and licensing requirements. These may include minimum kitchen size, living space, kitchen facilities and number of toilets.
HMO (Houses in Multiple Occupation) may be more profitable that regular buy to rent investments. HMO mortgages are also becoming more popular with landlords. However, is it really necessary to have an HMO mortgage? Can a traditional mortgage be sufficient?
A House in Multiple Occupation, also known as HMO, is a property being rented to several tenants. Some of these tenants may share the same facilities such a bathroom or kitchen. HMO permits landlords to rent a property to multiple households, instead of renting it to one household.
HMO mortgage requests take approximately the same amount time to process for lenders as other buy to lease mortgages. Every case is different. Pre-pandemic, it took three to four weeks to get a purchase loan offer. Then, it took four to six additional weeks to complete the transaction.
Students: They can have their rent guaranteed by their parents, and often have a limit to their study time.
Students: You can have your rent guaranteed (often by your parents) and usually have an automatic limit to the length their tenancy.
HMO houses can be more lucrative than regular buy-to-let investments. HMO mortgages are becoming more popular among landlords. But do you really need one? Or can a traditional buy-to-let mortgage suffice?