By Sue Sims
Hi me again back with part 2 of my series on HMO’s for beginners!
Myth Number 1 – HMO’s Make You Lots Of Money?
Well not necessarily with all of the rising utility costs and now mortgage interest rates its possible that a HMO could be tough to make work financially.
Myth Number 2 – Your HMO is going to get individually council tax banded
Yes this is true each room could attract its own council tax, this can be devastating on profit margin!
Myth Number 3 – Your HMO will get trashed if you have leased it to social housing!
Again this is not necessarily true – but as landlords we do have to do our due diligence. Of course if your HMO is being rented wholesale to a social housing provider they will take responsibility for all the tenants and property maintenance. Remember HMO’s can be for professionals as well as students etc!
Myth Number 4 – It will affect house prices negatively in the street
Well in my experience converting. a property to a HMO has often involved taking an otherwise run down property and renovating it to a high standard arguably adding value to a street. Often I am bringing a derelict property back into use.
That’s to for now – you can watch my REEL on this HERE
Sue is a founding partner in PIP and also Genie Homes.