Are you thinking about purchasing a home to let? Have you considered converting the property into a house of multiple occupants (HMO)? HMO’s are not just for students any longer. Research is showing that many people are renting with flatmates to help bring the cost of rent down. Yes, students are a large sector to share their living spaces but that’s changing as we see students graduate and continue to share their flats and homes.
There are many advantages to landlords and developers to the changing landscape of rentals. More Brits are going to university than every before and are extending their flat-sharing past graduation. In fact, young professionals have surpassed students in house-sharing. They now make up about 58% of the market. Renting your property to multiple tenants allows for you to collect more rent. It is less expensive for the tenants, each paying less for a room in a shared accommodation, than for one tenant or a family to pay the whole rent.
It’s a win-win situation. You, the landlord and investor, see a higher return on your investment by collecting rent from multiple tenants, than just one tenant who has a lower threshold to pay a high rent. The people who share a flat pay a lower rent than a single occupant but when all of the rents are combined then you’re making more money every month.
If you’re a bit nervous about letting to multiple tenants, having your property managed by a letting agency such as Now Rooms allows you the freedom of living where you want and travelling whenever you want, knowing that your tenants are looked after and your property is being well-maintained. Now Rooms offer many services and one of the best for your tenants is the community-engaging ‘club’ we run. The Now Rooms Liverpool Community is open only to Now Rooms Liverpool tenants. It is a private club where we run events and competitions monthly. It is a great place to meet new people, 90% of our tenants are new to Liverpool and this platform is great for our tenants meet and socialise with new people. Every tenant who moves into one of our properties will be invited to the Now Rooms Liverpool Community Facebook Group where all of our events are organised.
Converting a single-family home into a HMO can be fairly inexpensive and the benefits you’ll see are great for your investment. Turning an unused dining room, for example, into an additional bedroom to let doesn’t take a lot of work. If you’re ambitious, you might want to consider adding on to the existing house to create a few more rooms. The possibilities are endless and the return on your investment can be large.