Housing Multiple Occupation (HMO) properties. The HMOs have en-suites with stunning and desirable common areas.
Ensuring the HMO is built to a high standard makes it attractive to quality and professional tenants paying the market rental value.
The return on investment is approximately 3 years for a 5-bedroom HMO.
According to Gov. uk, a house in multiple occupations (HMO) is:
… a property rented out by at least three people who are not from one ‘household’ (e.g. a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘share’.
An HMO is defined as ‘large’ if:
- It is rented to five or more people from more than one household.
- It is at least three stories high.
- Tenants share toilet, bathroom, or kitchen facilities.
Landlords must have a license from the local authority if they rent out an HMO. A license is valid for up to five years. Unlimited fines can be imposed where an HMO is not licensed
The standards include:
- fire precautions and means of escape in case of fire.
- adequate amenities (kitchen and bathrooms) are provided.
- adequate space is available to tenants and there is no overcrowding.
- proper management is in place.
