This morning I thought id spice things up a bit and talk about something that is becoming more and more popular in Nuneaton…HMO’S!
A HMO is a house of multiple occupancy, there are various legal requirements that need to be put in place that aren’t all that costly in order to do this but you as a landlord must comply as a HMO of this size would have to be registered with the council.
This particular property located very close to the train station in Nuneaton could be turned into a 5 room HMO, with a communal lounge area, Kitchen and use of 2 ‘wash rooms’. As I have only seen photos I’m not entirely sure of what work would need to be done, but I would be more than happy to come on a viewing with you and advise.
This property is being marketed by Wright and Wright for £135,000, I have calculated that if each room was rented out for an average of £80 a week, this could give you an annual income of just over £20,000 which works out at £1,733 a month! This figure would also give you an annual yield of 15.4%!!
There are many pros and cons to having a HMO, there could be periods of time where the property isn’t fully occupied which would result in loss of earnings, but with an agent having a constant flow of tenant enquiries this shouldn’t pose too much of a problem. I would also recommend from experience, that you specify the rooms are to be let to working professionals only with a minimum contract term of 6 months.
If you would like to speak to us some more about the possibility of having a HMO, we would be more than happy to share our knowledge of managing such properties. Feel free to either pop in and see us on Bond Street, or give us a call on 02477 674545.