HMOs can prove to be a very lucrative investment but they need to be managed correctly to ensure they don’t go wrong. At T1property, we understand this and have set out to be the leading provider of HMO management Portsmouth has. Our expertise is relied upon by numerous investors and we always strive to deliver an outstanding service.
To ensure that you don’t make mistakes with HMO investment, we wanted to make you aware of what can go wrong, so you know what to avoid for future investments:
HMOs require a lot more management than the typical buy to let property. There are more standards to comply with and licenses which may need to be obtained. To meet your local authority’s requirements, you need to consider room sizings, amenities, fire and gas safety, and maintenance needs. If you fail to do any of these things or don’t have the correct licenses in place, you could face serious penalties and large fines.
High tenant turnover
Tenants in HMOs tend to only stay for relatively short periods of time. A good example of this would be university students who generally stay in a property for a year before moving on to other accommodation. This transience can result in longer void periods for landlords if not managed carefully, resulting in loss of income and an increased workload for landlords.
If there are lots of HMOs already on offer in a particular area as well as a lack of demand, it would be unwise to invest in the same location. In fact, there may even be Article 4 rules in place to prohibit new developments in areas where there are already high concentrations of HMOs. It is always best to invest in areas that are not saturated and where tenant demand is high.
Damage vs. deposit
With every letting comes the concern that the tenants will cause more damage than their deposit can cover, but this is a risk every investor must take. The trick to minimising this risk is to be careful when vetting tenants and to be thorough so as to minimise the likelihood of running into “trouble tenants”.
Each of the problems mentioned above could cause a negative impact on your investment. One thing you can do to reduce the risk of experiencing any of them is to work with a highly regarded HMO manager like T1property. That way you receive a first rate service and full support every step of the way.
If you would like to discuss an investment with the most dedicated provider of HMO management Portsmouth has, please contact us. We will advise you and tailor our services to suit your needs.