HMO - A house of multiple occupation (HMO) is a property rented out by at least 3 people who are not from the same household (for example a family) but share facilities like the bathroom and kitchen e.g. 3 or more young professionals or students each rent a bedroom in a property and share common kitchen and bathroom facilities. An HMO could also be called a ‘house share’.
In England or Wales a landlord must register their property and have an HMO license if they are renting out their property and meet any of the following criteria:
The property has three (habitable) storeys or more
It is occupied by five or more people in two or more households.
Although generally more expensive to purchase (and refurbish) than a BTL initially, an HMO can typically generate anywhere between £500-£1000 PCM cashflow. Which is great.
FINAL THOUGHT - How many HMO properties would you need in your portfolio to quit your job and still maintain the same lifestyle? Or possibly an even bigger question - how many HMO properties would you need to have the lifestyle you want?
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