As a landlord, adding a HMO to your property portfolio can be a good source of (extra) income, and student HMO accommodation can offer you good return on your investment. While of course purchasing a property which is ready to let to students is ideal, in many cases you may find a property that, while not quite right in its current format, may offer the opportunity for HMO conversion at a favourable price. Let’s take a look at what you may need to consider.
Choosing the Best Location For Student Property
A good location is the key to the success of your student HMO. While it’s obvious to start in a university town, not all locations are created equal. Student tenants are becoming more and more discerning. To find out more about suitable areas for your student HMO take a look at our HMO Landlord Letting Guides for University towns across England, Wales and Scotland here: https://studenthaus.zendesk.com/hc/en-us/sections/201783395-News
Is the Property Suitable for Student Tenants?
When considering a property to be let as a student HMO, check the suitability of the dwelling itself. Ideally a property would have similar sized bedrooms, but of course, in your standard residential house this is not always the case. Box rooms rarely add value – as they are not desirable and can sometimes not be let as bedrooms if they do not meet minimum HMO room size requirements. In some instances, more value could be offered by converting box rooms into en-suites or if from a financial standpoint possible to reconfigure the property layout all together.
It is also important to consider how many and how large the living areas in the property are. Generally, student sharers want a decent size communal area to relax and socialise in. So if you offer a combined kitchen and lounge make sure it is not too small and also meets minimum HMO size requirements. Several tenants also mean more cooking and a requirement for additional storage facilities! Does the kitchen have enough cupboard space? Are there enough sinks and fridges for the number of people? There are several areas to consider, and when looking at property, try and put yourself in the shoes of your potential tenants. From a HMO investor perspective it is important to meet all HMO room size, storage facility, cooking facility, etc. Requirements, maximising the number of rooms whilst making sure the layout is still an enjoyable and convenient space for your student tenants.
Considering Rental Prices and Demand
It’s essential that you do your homework when it comes to acquiring a property for student letting. As well as the location considerations outlined above, there can be other factors that will affect your predicted returns. While in some areas, demand runs incredibly high – there are certain locations where there is a large amount of student accommodation already available so you need to make sure your property is competitive.
Contacting a specialist student letting agency will help you to understand what locations are suitable for student lettings, how much rental income you can expect to achieve, what the student lettings cycle is like and other relevant student HMO topics.
For more information feel free to have a look here https://studenthaus.zendesk.com/hc/en-us or alternatively contact our team via our instant chat or firstname.lastname@example.org and we will be happy to assist further 🙂