Purchasing a buy-to-let or investment property has been a popular choice for many investors for more than decade now. We already know about the attractive high yields and ROI this offers but the market is seeing an overwhelming trend in HMO property investment.
What is an HMO?
Dispite HMO property investment being a raising opportunity, few people fully understand what it means and how it applies to them and their rental property.
HMO.org.uk states that an HMO or House in Multiple Occupation generally refers to one of the following:
– A house split into bedsits
– A house or flatshare where each tenant has their own tenancy agreement
– Students living in shared accommodation
On 6th April 2010, laws governing HMOs changed. The main change was the classification of rental properties based on their usage.
The previous classification allowed one family or up to six tenants to live in a single household. An HMO referred to bedsits and larger shared houses.
The new system classes houses with 3-6 unrelated tennants living as a single household as an HMO.
This means a landlord who owns a property that is currently let to a family but wants to let it by the room or to a group of 3-6 tenants (whether students, friends or young professionals) will need to apply for planning permission to do so.
The rules governing HMOs are different depending on where you live. England and Wales have one set of rules, Scotland and Northern Ireland have their own regulations.
If you’re interested in learning more about HMO property investment Mistoria Group have a dedicated team of professionals who can advise you on your responsibilities as an HMO landlord. They also have a number of HMO property investment opportunities in high grossing student cities including Salford, Manchester, Liverpool and Preston. Call us on 0800 500 3015 to find out more.