HMO (homes of multiple occupancy) as a rule accommodate at least three unrelated tenants, who usually share the kitchen, bathroom and toilet facilities. HMOs are often preferred by property investors since they achieve higher yields than traditional buy to let property investments. They allow the investor to maximise rental income due to the multiple rooms the property has.
As part of its investment deal, Seed secures income generating properties such as HMO, where extra value can be added to the property in the way of extending it to create more square footage, more rooms which can be let out to generate higher rental income.
Due to our extensive experience with property investment, we are able to find the right project to be incorporated in the investment deal offered to our clients. Our goal is to turn the property into a fully compliant accommodation, possibly finished to high-spec that will be appealing to prospective tenants.
HMO property investment is an excellent asset in the investment portfolio as it offers a great return on investment. HMOs have become extremely popular in recent years as a result of the growing demand for cheap and flexible living possibilities. The option to accommodate a great variety of different types of tenants – from social housing, students, to professional tenants and corporate let tenants provide more security in the income an HMO property generates.
HMO property increases the capacity of the investment since a single building can provide multiple homes to rent and accumulate profit.
When researching the market, we are looking to find the perfect HMO property with low property prices and exponentially growing yields. As experts, we are aware that there are three important things that should be considered when choosing an HMO property for investment: location, type of property and management.
Thanks to our professional expertise and the Partners we work we are able to understand the fluctuations on the property market and decide if at a certain moment it is better to buy an existing HMO or get a property that can be easily converted into one without accumulating costs.
The above-listed basics are the ones that guide us when selecting our investments so that we can offer a competitive final investment product to our clients.