HMO property management in England can be a headache for the most experienced of HMO landlords. If you’re new to the industry, it can be even more challenging. Knowing how to manage a HMO doesn’t come easily to most people, and with so many UK HMO regulations in 2024, it can be difficult to avoid falling foul of compliance rules while also turning a profit. With this in mind, let’s look at seven things you should know to ensure compliance and profitability in your venture.
1.Understand Your Legal Responsibilities
HMO landlords have various legal responsibilities that they must adhere to. You have obligations to your tenants that must be complied with, such as meeting all HMO fire safety regulations so those living in your property always remain safe. There are also HMO licensing requirements to comply with, and failure to do so could put you at risk of legal action. Therefore, it couldn’t be more important to draw up an HMO compliance checklist so that you don’t accidentally overlook anything that could cause you to fall foul of the law.
2.Make Sure You’re Insured
HMOs are deemed to be high risk properties by insurers, and that means traditional insurance products for landlords won’t give you sufficient cover. Specialised HMO insurance products are the best way to give yourself financial protection and peace of mind should a flood, fire, or other unforeseen situation arise. You can also arrange cover from malicious or accidental damage and liability claims for even greater protection for your investment.
3.Maximise Profits By Converting Living Spaces To Bedrooms
A great way to increase your profits as an HMO landlord is to convert any additional living spaces in the property into bedrooms. As an example, in properties with a large kitchen, living room, and dining room, it’s possible to turn the dining room into an extra bedroom to generate an attractive additional income.
Nevertheless, if you decide to take this course of action, you need to make sure that you aren’t breaking the rules around HMO overcrowding. All rooms must meet minimum size requirements to stay within the law.
4.Carry Out Smart Renovations
Keeping your HMO property looking its best is crucial for attracting and retaining tenants, however it can be a costly business. You can maximise your profits while also making your HMO appealing to prospective residents by making simple changes to key areas.
Keeping the front of the property clean and tidy will create a good first impression. Adding a doormat and a couple of pot plants or hanging baskets can go a surprisingly long way to boosting your HMO’s kerb appeal.
Indoors, giving communal spaces a fresh coat of paint and adding a few welcoming touches such as throws, cushions, and lamps will help to make tenants feel at home straight away without breaking the bank.
5.Boost Your Energy Efficiency
Energy efficiency in HMOs can be a problem, but if your EPC rating is low, there are a few simple and cost-effective steps to take to give it a boost and attract eco-conscious tenants at the same time. Installing a smart thermostat and motion sensor lightbulbs is an affordable way to demonstrate your commitment to saving energy while also helping tenants to reduce their bills. Meanwhile, opting for A rated kitchen appliances will help you meet energy efficiency requirements while also keeping costs down for residents.
6.Inspect Your Property Regularly
Carrying out regular property inspections is vital when it comes to spotting any potential issues before they get out of hand. Identifying problems at an early stage allows you to rectify them at the first opportunity, saving you money overall while ensuring your tenants’ ongoing satisfaction. HMOs in England see a lot of wear and tear when compared to single family rentals, so regular inspections form a key component in making sure they’re still compliant with the safety regulations and that your tenants are all adhering to their tenancy agreement’s terms and conditions.
Of course, it goes without saying that all property inspections must only be carried out after giving the appropriate notice and not so frequently that you overstep the mark and prevent your tenants’ enjoyment of the property.
7.Keep Communication Channels Open
Dealing with HMO tenant issues in a timely manner is crucial if you want to maintain positive tenant/landlord relationships. Poor communication only leads to frustration, and in turn, that can lead to high tenant turnover and low satisfaction levels. Make sure your tenants have ways to get in touch with you if they experience any issues. When they do message or call you, respond rapidly. Keeping your tenants on side is one of the most vital elements of HMO property management in England, so ensure communication channels always stay open.
Managing your HMO can be a lot of work, but with a trusted HMO property management company like The HMO Network onboard, your workload can be significantly reduced.
Email us today at beth@charlesdavidcasson.co.uk or give us a call on 01245 835859 to find out more about how we can make your life as a HMO landlord easier.