Landlords are facing more and more challenges when it comes to HMO property management in England, however, these challenges needn’t be insurmountable. Let’s look at some of the most common challenges for HMO landlords and discover ways of overcoming them.
Challenge 1: High Operational Costs for HMOs
The cost of running a HMO is certainly rising nationwide, and landlords in England are finding it harder to make a profit. Increasing energy costs and interest rates are causing some to rethink their investment, so it’s clear that changes need to be implemented to ensure that your HMO portfolio is sustainable and profitable. Improving your HMO’s financial efficiency is paramount, and so you should look for ways of reducing your overheads while also boosting your profits.
Challenge 2: Tenants Struggling to Pay Their Rent
The cost-of-living crisis is ongoing, and that’s making rent arrears for HMO landlords in England a concern. Increasing rent payments and financial insecurities are causing tenants to worry about how they’ll pay their rent, and that, in turn, is putting pressure on landlords who have bills to pay themselves. One way of managing this problem is by requiring all tenants to have a guarantor and having a clear procedure in place to deal with any failed payments.
Challenge 3: Tax and Legislation Changes
Over the past few years, the HMO rental landscape has seen numerous tax and legislation changes that have had a major impact on landlords, and it appears that there are more to come. Additional HMO licensing schemes are coming into effect soon while Section 21 evictions will be scrapped when the Renters Reform Bill becomes an act. This is unlikely to happen before late 2025 at the earliest but will depend on what happens to the Renters Reform Bill as it passes through parliament.
Fixed-term tenancies are set to be cancelled while the private rental sector will have to ensure their properties all meet the decent homes standard. It’s therefore imperative for all HMO landlords to be ready and prepared for the changes that are afoot. Our advice is to make your HMO property portfolio as agile as possible so you can pivot and act whenever necessary.
Ongoing Uncertainties
With everything above considered, it isn’t surprising that one of the biggest challenges for HMO landlords is ongoing uncertainty. It’s impossible to know what is going to happen in the future, and the impact that it will have on anyone who has invested in HMOs in England. It’s crucial for HMO landlords to stay up to date in the private rental sector overall.
If you’re struggling to deal with the many varied aspects of your HMO property management right now, using the services of a professional HMO property management company is the best course of action.
At the HMO Network we can take care of the hard work of running your HMO in England. We’ll deal with everything from finding and vetting suitable tenants to rental payments and efficiently sorting out with any maintenance issues that arise.
Get in touch with us today on 01245 835859 or neil@charlesdavidcasson.co.uk to find out more about our HMO property management services in England.