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Being a landlord can be hard work and whilst undoubtedly there are financial benefits to having a large property portfolio it is not without its headaches. Did you know though that there is an easier way to get an even better return on your investment?
HMO’s (House in Multiple Occupation) are classed as properties with more than three tenants who are not related. This means that you can have at least 3 times the amount of rent than a single let. So technically you can have increased revenue whilst having fewer properties. Think of the management fees you could save by getting rid of multiple lower, single yield properties and replacing them with fewer HMO’s. In addition, by having multiple tenants in one property you are also spreading the risk of non-rent payment or a tenant leaving and finding yourself without an income for that property.
On initial glance, HMO’s may seem like hard work. Unreliable, messy students with a high turnover of tenants. However, the reality can be somewhat different. Indeed, the market for HMO’s is also changing. No longer are they just the domain of students. More and more young professionals are seeking affordable city centre accommodation with like minded people. So, your options for attracting reliable rent paying tenants are on the increase.
So, whether you choose to let to students or professionals, with careful management, HMO’s can offer high returns in your property portfolio. City’s like Oxford are proving very popular and are perfect for HMO’s.
Most forms of Buy to Let Mortgage are not regulated by the Financial Conduct Authority.
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