Whether you’ve already invested in a HMO in England or whether you’re
considering taking the plunge, you’re sure to want to make a success of your
investment.
Managing a HMO can be complex and finding ways to ensure your property
business is sustainable, profitable, and futureproofed couldn’t be more
important.
The team at The HMO Network is bringing you the five essential steps to
building a successful HMO business, so you can make the most of your
property investment.
1. Understand the Local Population and Popular Locations
If you’ve already purchased your HMO, it may be a little too late for this first
step, but if you’re still debating which properties are right for you, it’s essential
to gain an in-depth understanding of the population and where in England they
want to live.
• What do the local statistics tell you?
• Are there enough people living in your chosen area looking for HMO
accommodation?
No matter how appealing you make your property, if it’s poorly located and
there is a lack of demand, it can never be truly successful.
2. Build Key Relationships
HMO investment has many moving components, so building strong
relationships with the key people who can support you in your enterprise is
vital. You need to work to establish connections with local agents, suppliers,
and builders so that you can be confident of everything running smoothly once
your HMO is up and running.
3. Understand Where Your HMO Is Going to Fit into the Local Market
If you’re going to invest in any business, you need to understand its local
market and where you fit into it. You’ll need to look closely at property specs,
room prices, and what your competitors are doing so that you can position
your HMO appropriately.
Knowing the HMO marketplace in England will allow you to determine the
right rental prices and the best tenants to market your property to.
4. Get to Grips with Planning and Licensing Requirements
These days, planning policy for HMOs is complex. You need to get to grips with
what your local council needs from you, what approach their planning department is likely to take, the timeframes you’re likely to encounter, and how you will demonstrate your property’s use before you make your
investment.
You’ll also need to determine what you need to do from a licensing
perspective. There are nationwide guidelines that you are required to comply
with nationwide if your HMO will be home to five or more tenants, but there
may also be local requirements too, especially minimum bedroom sizes and
amenity standards. Making an error with this could be a costly mistake, so take
the time to learn all the facts before you jump in.
5. Who Will be Responsible for HMO Management?
Managing a HMO is no mean feat, and it’s an area where a lot of landlords fall down. Trying to undertake the task independently can be stressful, time-consuming, and challenging.
The best course of action is to find a reliable HMO property management
company like The HMO Network. Our team are experts and have years of
experience.
To find out more about how we can help, get in touch with us today. Call us on
01245 835 859 or email us here neil@charlesdavidcasson.co.uk