Are HMOs being oversold? A recent article in Property Industry Eye suggests that HMOs are being sold too frequently in some areas and that this will be the next big property scandal.
The concerns raised in the article highlight the influx of new operators in the market who are offering to source, renovate and manage HMOs and who are making promises of huge returns and future riches.
The reality this agent is seeing is very different. They indicate that in some areas HMO rooms are available in large numbers but the actual market for that type of property in the area is much smaller, sometimes measured in just a few hundred.
This market oversupply in the areas has resulted in:
- Room rental rates plummeting.
- Many rooms going unfilled.
- Problems due to these houses not being built to home this amount of people.
- High maintenance and annual refurbishment costs.
- Anti-social issues.
- High level of maintenance and tenant issues.
- Quality tenants shunning HMOs due to bad experiences with shared houses.
- The quality of the HMO tenants is dropping in line with the prices.
- Many landlords saying that for the first time they are really struggling to find tenants for their HMOs
With new regulations covering HMOs coming in now across the UK the need to work with a quality HMO company such as Mistoria has never been greater.
The latest legislation will affect smaller HMOs and extends to a wide range of properties which were previously unaffected by mandatory licensing, such as certain flats above high street shops and small blocks of flats which are not connected to commercial premises. So now any house with five or more occupants, from at least two unrelated households irrespective of the number of storeys that the property has, is included.
So if you have an HMO there is a high probability that now you will need a licence. Make sure you are ready because the fines are being prepared for all who fall short. If in doubt call you local council.
Mistoria operate in the North West but primarily in Liverpool, Salford and Bolton, so if you are a landlord and are looking for an agent, we are specialists in HMO property management and can help you with all of your legal and management needs. We have thousands of rooms under management and more then 10 years experience in the market.
Using a quality HMO agent can save you from having to deal with many of the problems we have outlined so please give us a call.