Are you making the most out of your buy to let!
A House of Multiple Occupation (HMO) is essentially a house that is let on multiple agreements to several tenants, rather than just one single family unit. Examples of types of HMO could be:
- Student let
- Shared housing
- Self contained flats
- Blocks of converted flats
- Private halls of residence
To decide whether a HMO is profitable, you have to consider the rental yield and many experienced landlords opt for HMO as the yields are typically greater than when letting to a single family unit as you are able to charge per room.
As there are different types of HMO, there are also different types of tenants you are likely to attract and you need to carefully think about the implications of these tenants, such as higher than average turnover. It is also likely that a standard buy to let mortgage will not be suitable for financing a HMO and that the property may require an HMO licence from the local authority (you can check here). If you investigate all of your legal obligations upfront, you are less likely to encounter problems further down the line.
Once you have done all your homework on whether an HMO Buy to Let is right for you, it is time to find the right mortgage for you. Your mortgage broker PAD Financial can source you a lender that is right for you and the property and discuss with you all the costs involved in an HMO mortgage, then please contact us now.