Buy to let landlords will see a profit on any type of letting property they own. Getting the most from your investment, though, would be from either investing in an HMO or adapting your property to an HMO. Single occupancy properties, where you let to a family, for example, can’t bring in as much rent as an HMO. If you own multiple properties, you might consider a mix of single and multi-occupancy type homes.
Landlords are adapting to a changing market of tax changes, new licencing regulations and the tightening up of mortgage borrowing. The traditional buy to let model is on the wane, as landlords cotton on to the fact that HMOs offer better returns. A traditional four-bed family home can easily be converted to an HMO with the addition of extra bathroom facilities and fire-safety features. Each tenant is offered a separate assured short-hold tenancy agreement that lets them share communal areas but have their own bedsit.
An HMO landlord may have to apply for a licence, but this business model is very advantageous. For starters, if a tenant moves out, the others are still paying rent, so it won’t be hard to keep up with mortgage payments. HMOs do require more management, but for career landlords, this is rarely an issue and many choose to use an agency to manage their investments. Now Rooms is an excellent source for property management.
With the Tenant Fees Act passing its final hurdle in the House of Commons and receiving Royal Assent this month, agents and landlords will start preparing for a post-tenant fees world. Now Rooms Liverpool can help you navigate the new waters and land on solid ground, still making a good profit from your investments. There are pros and cons to letting a single or multi-occupancy property. A mix of your portfolio may serve you well in the future.