Not just any house is fit to be a HMO
Not just any old house will do. Regardless of if you are looking to buy or you are out viewing Rent to Rent options the first thing you need to consider is the minimum number of rooms to make a HMO financially viable. Then, consider the floor plan.
Whether you require a license for your HMO or not it is essential to make sure all the rooms meet the minimum rooms size of 6.51 square meters or 70 square feet. This isn’t a target by the way, it should go without saying the bigger the room the better. Some local authorities will also have minimum room sizes for communal areas such as open plan living, kitchen and dining rooms.
HMO’s close to amenities and transport links will let faster than a house on the outskirts of a town. Places on the outskirts will Let but you may have longer voids.
In Gloucester there is a particular style of bay fronted houses which tend to be a 3/4 bed semi with downstairs bathrooms. These houses work well. Once upon a time there would have been a bathroom upstairs which is normally already converted to a bedroom. You then have a further two good size double bedrooms (one normally big enough for a small en-suite) and one, if not two reception rooms.
En-suite rooms will always be more popular. If your budget won’t allow or there just isn’t space, beautifully presented double bedrooms will still be desirable.
If the property doesn’t have more than one communal toilet then make sure there is a space for one to be installed (maybe even a shower room). It is essential you consider the plumbing options. If you cant get onto the mains you may have to consider Saniflo. These can be expensive to install, expensive to repair when they go wrong. They can also be a potential flood risk so think this through carefully.
Kitchens need to be big enough to have at least one cupboard per tenant plus a bit extra for communal items such as pots, pans, plates cups etc. You need to make sure the kitchen has ample space for white goods. The amount of times a fridge ends up under the stairs or somewhere random because the kitchen is too small is surprisingly frequent. It’s unlikely everyone will want to cook at the same time but consider this when looking at the size of a kitchen.
A lounge is essential. If you cut corners and think you’ll use the extra space as a bedroom you will get a much higher turnover of house mates. I myself have lived in house-shares and the one I lived in with no lounge drove me and my house mates mad. Socialising was pretty much out of the window. I felt like I was constantly in bed due to having no chairs or sofas to sit on.
I always look for something that has a relatively low maintenance garden and off-road parking for at least one car.
There is no Article 4 in Gloucester but make sure you consider this for other areas. Different councils have different rules and regulations and planning restrictions. Always get in touch with your local HMO team if you are unsure.
This is the first in a series of articles to help prospective landlords and investors in their investment journey. Keep a look out for our next article. Happy hunting!