So, you’re a landlord looking to make the most of your investment in the thriving (yet sometimes intimidating) London property market. You’ve heard about Houses in Multiple Occupation (HMO) properties and how they can be a great source of passive income, but the thought of converting your own property into one feels overwhelming. Don’t worry, we’re here to reassure you that it’s not as scary as it sounds!

First things first, what exactly is an HMO? Simply put, it’s a type of housing where multiple unrelated individuals share common facilities such as a kitchen and bathroom. HMOs are a popular housing option in London, particularly for students and young professionals who are looking for a cost-effective way to rent a room in a shared house. As a landlord, you can enjoy increased profits from renting out multiple rooms to these tenants.

Now that we’ve got that out of the way, here are 5 reasons why converting your property into an HMO might be a smart move:

1. Increased rental income: By renting out multiple rooms, you can significantly increase your rental income compared to renting out a whole property to just one tenant. And let’s be real, who doesn’t love a little extra cash in their pocket?
2. High demand: HMOs are in high demand in London, particularly in areas near universities and transport links. This means you are likely to have a steady stream of tenants, reducing the risk of void periods (aka, empty properties that aren’t making you any money).
3. Potential for long-term tenants: Many tenants of HMOs stay for longer periods, as they may be studying or working in the area for an extended time. This can provide stability and reduce the cost of finding and onboarding new tenants. Plus, it’s always nice to have a little more predictability when it comes to your income.
4. Professional management: If the thought of managing an HMO feels overwhelming, there are plenty of companies out there (not just us!) that offer professional management services to help you navigate the process of converting your property into an HMO. They can assist with everything from obtaining the necessary licenses to finding reliable tenants. Just make sure to do your research and choose a reputable company that aligns with your values.
5. Flexibility: One of the great things about HMOs is that you have the option to be as hands-on or hands-off as you want. Some landlords prefer to manage the property themselves and have a more personal relationship with their tenants. Others prefer to hire a management company and take a more passive approach. The choice is yours!

Converting your property into an HMO might seem intimidating at first, but the potential rewards are definitely worth considering. Just make sure to do your due diligence, seek the advice of professionals, and choose a management style that works best for you. And who knows, you might even have some fun along the way (we promise it’s not all paperwork and stress!)