Students: Can have their rent paid by their parents. Usually, they have a set length of tenancy.
A House in Multiple Occupation (HMO), is a property that is let out to more then three tenants. These tenants have private bedrooms, but they share other rooms such as the kitchen, bathroom, and lounge. The lounge, kitchen, and bathroom. If people refer to a HMO by using the terms 'flat share' and 'houseshare' they mean an HMO.
HMOs: What are the benefits? - Less "impactful voids": A gap between tenants at a single occupancy house can be as little as one month. This allows you to make repairs, redecorate, and view the property, without any rent coming in. The rent received from other tenants can be reduced with an HMO. Your costs could be more tax-deductible than a standard BTL.
HMO licences may be granted by different councils. If you are applying for a HMO licence, you should be fully informed about all the conditions. HMO licences must be obtained from the local authority. Otherwise, a fine of up PS20,000 will be imposed on anyone renting a licensable HMO.
A traditional buy to rent model would typically house a household or even a group of people who have made the decision to live together. Disputes are resolved in the home without having to go to the landlord. This is why landlords usually have an HMO type. It could be student buy to let, or an HMO for professionals only.
Traditional buy to let would house a family of people or at most people who choose to live together. Disputes within the household can be resolved without needing to involve the landlord. The HMO type will typically be for students or working professionals.
HMO (Houses in Multiple Occupation) may be more profitable that regular buy to rent investments. HMO mortgages are also becoming more popular with landlords. However, is it really necessary to have an HMO mortgage? Can a traditional mortgage be sufficient?