hmo finance hub
HMOs often come furnished. This is another cost to be aware of. Traditional buy to rent properties are usually unfurnished.
Many HMOs can be furnished fully. This adds an additional cost. Traditional buy-to-let properties are often rented unfurnished.
It is crucial that you get the best possible deal on your financing to ensure a long-term return. Get in touch with our HMO mortgage finance specialists.
HMOs often come furnished. This is another cost to be aware of. Traditional buy to rent properties are usually unfurnished.
HMOs need a license from the local council where the property is located. This licence must be valid for five year. It is important to check with the local authority about the area's policy. Although five-person properties are the most common, smaller properties that have fewer tenants may also need a license. It varies depending on where you live so it is important to get all information before applying.
HMOs are an investment opportunity. HMOs offer fewer "impactful empty spaces": The gap between tenants of a single-occupancy property can be no more than one month. This allows for repairs and redecorating as well as viewings. Rent does not come in. You can reduce your losses by having an HMO where the rent is paid by the remaining tenants. A higher percentage of your expenses may be exempted from tax than a standard BTL.
These higher potential rewards have higher risks. Tenants are more likely to leave than in a traditional buyÐto-let. Additionally, every tenant you add is an unknown risk (e.g. Will they pay the rent? Will they cause harm? Will they cause any disputes? You will also need a specialist loan.
A House In Multiple Occupation can offer more income than traditional buy to rent. Landlords have the opportunity to maximise rental incomes due to high rental demand in the UK. The right mortgage is key to maximising the rental income.