HMOs (houses in multiple occupation)
If a HMO (house in multiple occupation) is on your investment shopping list, Move Places Investor Club can match you with the
right house or large flat for sale.
A HMO is defined as a building, or part of a building, where at least three tenants live, forming more than one household
(a household is defined by the Government as either a single person or members of the same family who live together). A
large HMO is classed as a property where at least five tenants live, forming more than one household. All HMOs have shared
basic amenities in common, such as a communal kitchen or shared bathroom.
Why invest in a HMO?
- Recent data shows higher yields for HMOs than conventional buy-to-lets
- Potential to add value by extending or remodelling the property
- Increase rental income by turning reception rooms into bedrooms
- Professional house shares are proving increasingly popular among tenants
- The student audience for HMOs has been historically strong
Considerations before buying a HMO property
Landlords may need a HMO license to operate – some of these are discretionary while others are mandatory, linked to the
number of tenants and even the height of the property. There are also additional legal requirements, compliance issues
and regulations attached to a HMO, although these can be handled by a professional property manager. If you’re not
buying for cash, landlords may need a specialist HMO mortgage.
