The Pros and Cons of Converting a Property Into a HMO in England

Jan 12, 2024 | Blog | 0 comments

If you’re considering going into HMO property management, the first step is to weigh up all the pros and cons before you forge ahead with any conversion project.

HMO property investment can be extremely lucrative. However, there are certain challenges in HMO conversion that need to be taken on board before you take the plunge.

As experts in the field, the team at The HMO Network have some HMO conversion tips for you. In this helpful HMO conversion guide, we’ll address the benefits (and some of the pitfalls) of HMO conversions so that you can make a well-informed decision.

The Benefits Of HMO Conversion

There are numerous advantages to converting a property into a HMO including:

Maximizing Rental Income With HMOs

Perhaps the top reason for converting any property into a HMO is that it’s possible to maximise your rental income. As several tenants share the property, you can individually charge more rent than you could for a single-family rental. As a result, you’ll be able to benefit from greater cash flow and higher profitability overall.

Less Chance Of Void Periods

One of the problems that landlords in England

often face is void periods between tenants where they receive no income from their property. With a HMO, however, the risk is substantially reduced as HMOs typically have shorter void periods when compared with single-let tenancies. Furthermore, if a tenant leaves, the loss can be offset in part by the income you make from your other tenants, helping you to remain financially stable.

A Diverse Tenant Base

Many kinds of tenants are attracted to HMOs, from students to young professionals, and this diversity helps to reduce the negative impact on rental income from economic downturns.

Greater Demand

There is a very high demand in many urban locations for HMOs, and this demand often results in a continuous pool of potential tenants, enabling landlords to ensure the property remains occupied.

The Downsides Of HMO Conversion

While there are many advantages to HMO conversion in England there are unfortunately some downsides too. These include:

Stringent HMO Regulations And Compliance Requirements

There are some strict regulations pertaining to HMO property management in

England with rules surrounding licensing, safety, and room sizes. Not only are there national rules that must be followed, but there are also sometimes local HMO regulations to comply with. Compliance with these regulations can be costly and time-consuming.

HMO Property Management And Ongoing Maintenance

Managing HMOs is often more labour-intensive than managing single-let properties since you must manage the concerns and needs of several tenants, carry out regular property inspections and deal with maintenance and repairs promptly. Maintenance is usually required more frequently too since HMOs see a higher level of wear and tear than standard single-family rentals. That also means budgeting more for replacements of fixtures, fittings, and furnishings which will eat into your return on investment for HMO conversion.

High HMO Conversion Costs

Converting properties in England into compliant HMOs typically requires a high upfront investment. You will need to obtain HMO planning permission, consider HMO design and layout, and make alterations so the property meets current safety standards, all of which can prove to be expensive.


In some areas, HMOs must have a license, and this also has an associated cost for inspection, renewal, and application fees.

High Tenant Turnover

Usually, HMOs have a higher turnover rate of tenants than single-family properties, and constantly sourcing and vetting tenants is often disruptive and time-consuming.

Should I Invest In A HMO Conversion?

Investing in a HMO conversion is often an excellent strategy for landlords in the UK who are keen to enjoy a higher income with reduced voids. However, there are some challenges to bear in mind too, including greater management responsibilities, stringent regulations, and higher upfront costs.

Fortunately, many of the difficulties associated with HMO property management can be mitigated by using the services of a HMO property management company.

At The HMO Network we can assist with the most onerous aspects of running your property. This includes finding and vetting tenants, arranging maintenance and inspections, and managing rent payments.

To find out more, contact our team today on 01245 835859 or at