An HMO, or House in Multiple Occupation, is a property rented by three or more tenants who are not related. Portfolio landlords often choose to invest in such properties, as they tend to offer a higher rent yield. HMOs are prevalent in student-heavy areas, but young working people who are willing to house-share also rent them.
If you are a landlord who would like to convert a property into an HMO, there are a number of factors you must first consider. If you are interested in this type of property renovation Salford based RFM Trading can guide you through the whole process in detail, from initial licencing, to maintaining the property once it has been converted. In this article, we provide a brief overview of the process.
Before you can begin the conversion process, you need to ensure you comply with various legal regulations. An HMO licence isn’t necessary for every building however, if the property is at least three stories and contains five or more tenants who share bathroom, kitchen, or toilet facilities, or even if only one of these criteria apply, you will probably need one. If you do, you must also install smoke alarms and inspect electrical goods for faults. Of course, this should be standard practice for all landlords, irregardless of the need for an HMO licence.
In order to convert to an HMO, you may need planning permission from the local council. However, at RFM Trading, we can undertake permit applications and liaise with the local authorities on your behalf.
You should also consider both what you and potential tenants want from the property. Think about how much space tenants will need, and consider especially the level of furnishing and equipment you wish to provide. It is important to note that within five years of any HMO conversion, local authorities will carry out Health and Safety checks. Take this into consideration when you begin.
You will no doubt need to convert spare rooms into additional bedrooms and bathrooms, which may require considerable work involving the moving of walls. Before you convert too many rooms, however, remember that potential tenants may be put off by the lack of a living room. You may also wish to convert a garage or loft space into another room. If you do so, it’s more likely that you’ll need planning permission. Plan well ahead with the assistance of professionals. such as those at RFM Trading.
HMOs usually have a higher tenant turnover than traditional properties, so you should consider how this difference will affect your property. There may be periods when the property is unlet; ensure you can financially absorb the effects. Levels of wear and tear are also usually higher in an HMO. Therefore, prepare for more repair requests, and have money set aside to deal with any issues that arise.
How RFM Trading Can Help You
If you wish to carry out a property renovation Salford based RFM Trading are here to help. Our broad team of specialists can assist you with every aspect of an HMO conversion. For more information on the services we provide, call us on 0161 707 6106 or email [email protected]. Alternatively, complete the contact form here.