A property is classed as an HMO if three or more unrelated persons rents parts of the house, possibly sharing facilities like bathrooms and kitchens. Not all properties are suitable to be HMO’s and there are a number of extra regulations and costs but HMO’s can be substantially more profitable in comparison to standard residential lets. Many Landlords are now looking for HMO’s to be part of their portfolio’s in order to increase cash flow.
HMO’s have more overheads but can produce up to 75% more rental income and a ROI of 13% to 20%
Jacobs Properties, a sales and letting agent in Basingstoke has over 25 years experience of managing HMO’s. Many letting agencies will not consider HMO’s because they are more work, but we have the skills to develop, set up and manage HMO’s.