Should I Own an HMO Property


Should I Own an HMO Property

What is an HMO 

A Housing in Multiple Occupation (HMO) rental is a property where three or more people who aren’t related or part of a couple live in one single property and share a kitchen and bathroom. Lots of young people and student live in HMO properties to live with their peers and save money wherever possible.   

Lots of young professionals are now also looking for HMO properties because of the state of the housing market and rising prices during the recession.  

HMO properties are quickly becoming some of the most sought after throughout the country 


Licenses and Regulations  

  • Owning an HMO property comes hand in hand with extra menial tasks and administration. The regulations of a normal property or “single-let” are much less strict than those for HMOs because of the increased risk of damage. The rules also ten to change very often which means you have to stay on top of the changes or risk being caught out.  

Expensive Mortgages:   

  • Mortgages on HMO properties are usually much more expensive and you’ll also be asked to put down a larger deposit. Landlords insurance costs tend to be higher as well due to increased risks. 


  • HMOs are usually let out by students because they tend to move from place to place throughout their degree. This means that the turn over rate can be more than double for an HMO property compared to a single let.  

You’ll also have to put in the extra time it takes to find tenants who are suitable.    


Higher ROI 

  • With HMO properties, you’ll likely receive a significantly larger Return On Investment (ROI) as you can charge more for a HMO property than for a single let. On average, HMOs often bring in about three times more than single-lets.  

Spread Risk  

  • With more than three people living together, you of course spread your risk. If one of your tenants cannot pay their rent, you will still have the rent from the others to keep you going. 

Resistant to changes in the market. 

  • HMO properties are very resistant to shifts in the housing markets: there will always be young people and students looking for HMOs. Indeed, even with uncertain futures amid the current recession and global pandemic more want to cut their costs by living with others.   

How Can We Help?   

At ZFA Group, we’ll help you think about whether an HMO property is right for you.   

If you’re interested owning an HMO, speak to one of our friendly knowledgeable staff – we can help you with a range of services, from property management, Guaranteed Rent London, and estate agency to investment and commercial letting. At ZFA, our priority is your peace of mind.   

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