Being a landlord of an HMO property isn’t easy. The very fact that your rental property is home to multiple different tenants makes it more work from an administration point of view and it’s also subject to more rules and regulations than a standard single let.
Maximising the potential revenue from your HMO will help you achieve the extra profit that HMOs can offer over standard lets. And that makes all the extra effort and complications worth it.
Understand Your Legal Obligations
A clear overview of your legal obligations should be your starting point to maximising revenue since any mistakes here could cost you dearly. You are likely to be required to obtain an HMO license from Peterborough City Council, ensure you stick to the correct number of people per property and comply with additional fire regulations. Overcrowding, for example, could land you with a £5,000 fine while failing to apply for a licence could land you with a £30,000 fine.
Maximise Space
With more tenants in your property and a sharing of communal space, then every inch of floor space needs to works to its max. Consider loft conversions or extensions if the returns are worth it and the opportunity is there. Alternatively simply reassessing space, such as converting a dining room into an extra bedroom or a corner nook into an extra toilet, can help boost revenue.
Keep On Top Of Maintenance
The additional numbers of tenants in your property will mean extra wear to the communal areas and appliances that they share so keep a close eye on these so that you can deal with any problems swiftly. Encourage your tenants to report any issues early. Keeping on top of maintenance issues will not only help to reduce big repair bills in the future but will also keep tenants happy.
Deliver What Your Tenants Want
Another way to ensure that you are maximising income and minimising your outlay is ensuring that you are targeting your property correctly for the market. So if you are near a university campus then students might be an obvious target market, but wear and tear might be higher so invest in durable fixtures and fittings.
You will be able to charge more for graduates or young professionals but along with their higher income will be greater expectations around higher quality fittings so invest accordingly.
Look At Energy Efficiency
In an HMO it is usually your responsibility as landlord to pay utility bills which means that it’s even more vital to do what you can to reduce the energy cost of your property. Look at insulation to maintain heat, ensure boilers are performing to their optimum and use systems such as sensor lighting to ensure your property isn’t lit up like a Christmas tree even when tenants are asleep.
When it comes to heating controls you may want to invest in HMO-specific thermostats such as Inspire or Time:o:stat which allow you to restrict the length of time that tenants can have heating on and so reduce wasted energy. Better control over your energy costs in an HMO will have a huge impact so should be a priority.
We Can Help
At Progressive Lets we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. We have a dedicated HMO team who are here to help. We can find you the right HMO property, assist with the conversion, help source reliable tenants, and even manage the property for you. Please get in touch for more details.
