One of the key issues facing anyone who wants to become a successful HMO investor is knowledge of the necessary legislation surrounding HMOs.
You cannot simply take a regular house and decide one day to move lots of tenants in and start charging them a rental fee. There is legislation both national and local that must be followed and Mistoria’s HMO Investment advice can assist you through the many points that must be carefully considered.
A good example is the recent guidance, published by the Ministry of Housing, Communities and Local Government, on Houses in Multiple Occupation (HMOs) and residential property licensing reforms, which defines the sanctions for breaching minimum room sizes, as:
- knowingly permitting the HMO to be occupied by more persons or households than is authorised by the licence;
- failing to comply with a condition of the licence such as a prohibition against occupation as sleeping accommodation.
The government recognises that houses in multiple occupation (HMOs) “form a vital part” of the private rented sector in England. They offer low cost housing choices to many different groups including students, young professionals and migrant workers.
However it has been widely publicised that some unscrupulous landlords have used unsuitable properties and they have moved too many people into them creating both unhealthy and potentially dangerous living conditions due to increased fire risks.
By using an experienced developer such as Mistoria you can ensure that any conversions required to a property meet all legislation. Alternatively you can invest in one of our existing HMO properties that has already been converted and has a successful track record of attracting tenants and generating a steady income.
HMO Investment Advice
Our aim is to provide ‘Turn-Key’ delivery of a high yielding student and professional accommodation property, delivering a strong monthly cash-flow and annual ‘cash’ combined net yields of 13% (Rent and Capital). These returns will be as high as 35% if geared.
Please take a look at the various HMO properties we have available for immediate investment or if you would like to discuss building your property investment portfolio, contact us on 0800 500 3015.