A HMO or House of Multiple Occupancy is a good investment. Our HMO Property Guide will take you through the basics of investing in Houses of Multiple Occupation. Once seen as a profitable type of buy to let it has fallen in popularity more recently due to changes in taxation.
This means that margins may be smaller, but it is still and area worth considering and there are options open to you such as buying through a limited company. You generally find these types of properties in highly populated areas, close to Universities, Colleges, Hospitals and Airports.
Before you purchase a property whether already operating as a HMO, ot one you aim to renovate. It is vital to gain local knowledge as to what is classed as a HMO and what the requirements are from a legal point of view, this can differ from area to area, so speak to your local planning department to gain further insight.
As a general rule a property that is to house 5 or more unrelated people and has 3 or more floors is classed as a HMO although as already mentioned you will need to check with your local council as the rules are different in different areas across the UK.
Call Now To Speak To One
Of Our Friendly Staff
All our Quotes are tailor made to get you the best cover. Call now for a customised one minute quote.
Get a Quote
Speak to one of our team today and we’ll find you the best quote on the market
Basic Requirements of Being a HMO Landlord
There are also some basic requirements that as a HMO landlord you need to consider:
- Fire doors and closets
- Fire Escapes
- Gas Certification
- Fire Exit Signs
- Electrical Certification
- Safe Furnishings which are fire tested
- Linked smoke alarm system
- Recreation room
- The number of bathrooms and kitchens need to be right depending on the number of residents
- Specialist HMO Insurance
- Do you need a license
- Do you need planning permission
- Is this a HMO or a multi let?
The local council are an essential resource for you if you are considering this and although it is more involved and the costs are higher than a traditional Buy to Let, the return is also higher. You might also consider joining the NLA (National Landlords Association) as this will introduce you to a wealth of information that can help you first make the decision about whether HMO will be right for you. Secondly how to source and manage your property and thirdly open up a network of other landlords that have already done it.
The other thing to consider is the type of insurances you need, Goldcrest offer specialist HMO Insurance and are happy to offer advice on what exactly you will need for your property. We are one of the country’s leading insurers in HMO cover and have the expertise to offer the very best policies to you. We are independent and because of this also give you that level of customer service that many of the larger companies cannot.
So if you want to find out more about HMO Insurance then get in touch today!
