Table of Contents
Are HMO properties worth more?
The positives to investing in an HMO property The most obvious benefit and the main reason so many landlords choose to invest in an HMO property is the rental income that can be achieved. HMO’s are known for providing much higher returns than the majority of single let properties.
Are HMOs profitable?
Why choose HMO rather than a buy-to-let property? When compared to standard buy to let rental properties, on an HMO you should expect a minimum of 12\% gross yield, and on average a likely 15\% realistic gross yield. That is why an HMO investment can give you a life of luxury in retirement.
Can a HMO convert back to House?
Yes in certain circumstances. HMO licensing cannot be used to require a property to remain occupied as an HMO. However certain HMOs, whether or not they are licensable, require change-of-use planning permission to be converted back to a single dwelling.
Who pays the council tax on a HMO?
the owner
Liability of the owner for houses in multiple occupation (HMO) The owner of the property is liable to pay council tax on houses of multiple occupation. These are properties that are occupied by more than one household (or by one or more tenants each with their own tenancy agreement for part of the property).
Does a HMO need planning permission?
The quick answer is: no, often you don’t need planning permission to convert a property to an HMO.
Are HMOS still a good investment in 2017?
In 2017 HMOs are still great investments that deserve consideration. But, it’s important to go into this kind of investment with your eyes wide open. Houses in multiple occupation have their downsides too: With HMOs, there is more legislation and there are more planning requirements than there are with more straightforward buy to lets.
Should you invest in houses in multiple occupation (HMO)?
The Case For (Investing in Houses In Multiple Occupation) The clearest benefit of investing is HMOs is that they can provide much higher returns and cash-flow than most single lets. Rental yields can be as much as three times higher. There are less (impactful) rental void periods.
How are HMOs treated in the UK?
HMOs are treated like any other rental property, and this applies regardless of whether buy-to-let (BTL) or commercial financing has been used. However, as opposed to conventional BTL properties, HMO property landlords can claim ´Plant & Machinery Capital Allowances’, a form of income tax relief.
What are the benefits of HMO property?
There are many benefits to investing in HMO property, with the obvious one being the increase in rental yields over single-let properties. According to findings by GVA Redilco, HMO properties produced the highest yields in the first half of 2018 for the property investment sector at 7.1\%.