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The Ins and Outs of HMO Property
Here at Nick Fox Property we primarily focus on HMO properties. With over 500 individual units in and around Milton Keynes and the Home Counties our portfolio boasts a healthy £35 million worth of property.We know property success can happen through HMO property so here are some HMO tips to help you succeed in your HMO lettings.What are HMO’s?HMO is a House of Multiple Occupancy. In other words the property is shared by people which represent more than one household. So anyone who has a different surname and is not in a relationship and have shared access to areas such as the bathroom and kitchen.Why HMO?HMO’s can be hard work but of course the reward can be more than worth that work. When you first start on the HMO journey there can be challenges along the way but the profit in a HMO letting can be two or three times the level of a single let.Some Nick Fox HMO Tips1. Know your marketThis applies to any property letting but it’s important to know who is likely to rent your property. For a HMO it‘s most likely to be students, transient workers and lower paid workers. This can through up its own challenges so ensure you get the right deposit and be clear on how you operate from day one.2. Consider the legal implicationsRemember the rewards can be greater but there are also many legal factors to consider. HMOs often require more hard work and dedication than typical rental properties. There are a number of challenges involved in managing a HMO and details such as licensing and regulation changes can be confusing. It’s vital you know the law in these areas and get it right or the consequences could undermine all you are trying to do.3. Have regular inspectionsIn regular tenancies landlords have to notify and give notice when they are going to conduct an inspection, however, this is not the case for a HMO. It’s important to visit the property on a regular basis to ensure everything is as it needs to be and to conduct the necessary health and safety checks.If ever the worst was to happen landlords need to be able to show they have done the necessary checks. Also, ensure you get certain requests in writing so you have proof of what you have been doing.4. Protect the tenants depositsLike with any property that you are letting it’s important to protect your tenants’ deposits under the Tenancy Deposit Scheme. This means that should any problems arise when the tenant decides to leave, a third party will be able to deal with any discrepancies.Remember, that the deposit needs to be secured within 30 days of receiving it in order for both the landlord and tenant to be protected. If you choose not to secure the deposit you will be unable to issue a Section 21 notice should you want to evict your tenant during the tenancy. This would be a mistake!5. Get adviceOften when people decide to move into the area of letting properties they attempt to do all the necessary research on the internet. Of course there is a certain amount we can learn from these sources but professional advice could end up being the key to your HMO success. Here at Nick Fox we help many to set up HMOs through a variety of different mentoring packages. We teach you what you need to know so you can avoid the mistakes that many people make and start to see your success earlier than you ever thought possible. To find out more about how we can help, visit our website today.