If you’re a landlord in London, you may have heard of HMOs, or Houses in Multiple Occupation thrown around in property circles. HMOs are properties that are rented out to three or more tenants who are not part of the same household but share common areas such as the kitchen and bathroom. While the idea of converting your property into an HMO may seem daunting, it can actually offer several benefits for landlords. Here are 5 reasons why landlords in London should consider converting their property into an HMO:

1. Increased rental income: HMOs typically generate higher rental income than traditional single-let properties. With multiple tenants occupying the property, landlords can charge higher rents and still provide affordable accommodation to tenants. This means that landlords can increase their profits and generate a higher return on investment.
2. Lower void periods: With multiple tenants in the property, landlords can enjoy a lower risk of void periods. Even if one tenant moves out, there are still others paying rent, which means landlords don’t have to worry about the property sitting empty for long periods of time.

3. More flexibility: HMOs offer landlords more flexibility when it comes to managing their properties. With multiple tenants, landlords can stagger tenancy agreements and arrange for different start and end dates, which means they can avoid a situation where all tenants are leaving at the same time.

4. Diversification of risk: By having multiple tenants in a property, landlords can diversify their risk. If one tenant doesn’t pay rent, the other tenants can still cover the costs, which means landlords are not solely reliant on one tenant’s income.

5. Potential for capital growth: HMOs are in high demand in London, especially in areas where there is a shortage of affordable housing. By converting their property into an HMO, landlords can tap into this market and attract a wider range of tenants, including students, young professionals, and key workers. HMOs have the potential to increase in value of your property over time

While the idea of converting a property into an HMO may seem daunting, it’s not as scary as it sounds. There are a number of regulations in place to ensure that HMOs are safe and well-managed, and landlords can work with specialist HMO management companies to help them navigate the legal requirements. By converting their property into an HMO, landlords can enjoy increased rental income, lower void periods, more flexibility, diversification of risk, and strong demand in a growing market.