needs to be placed in the turn-key provider to ensure these won ’ t crop up 6 months after purchasing the property . However , when doing an HMO conversion yourself you will see the refurbishment works take place step by step . You will have a complete overview of what was done and assurance that your property will be bulletproof well into the future
3 . The Refinance
You will initially need less money upfront when buying a turn-key HMO , however there will be very limited scope to refinance . When doing the conversion yourself , you will be able to capitalise on the increase in value that has been created from conducting the refurbishment works yourself . This will mean that when it comes to refinance time you will be able to pull out a lot of your initial investment .
Who will manage my HMO and provide us with tenants ?
A trustworthy HMO agency provides you a turn-key management service for our local and international clients . We have worked very hard over the years to ensure we have built extremely strong partnerships with a local partner .
Once the property is ready , we will provide a formal handover to ensure that the process remains completely hands off .
What kind of ROI ’ s can you expect ?
A good ROI for an HMO investment in the UK typically falls between 15 % and 35 %. This considers both rental income and potential capital growth . However , it ’ s highly dependent on location , property type , and management efficiency . However , HMOs are not like typical buy-to-let properties .
Aren ’ t there too many HMO ’ s in the UK
In short , there ’ s not enough . This isn ’ t just for HMO ’ s but for UK housing in general . The UK is a small island with limited land and a growing population . The UK government releases official reports every year detailing the extreme shortage of housing - and affordable housing at that . Local councils are also desperate for more affordable and social housing to help with the shortfall needed for the vulnerable , homeless , asylum seekers etc .
Demand for HMO rooms remain extremely strong as HMO ’ s help by providing affordable housing and utilising one house to accommodate multiple tenants .
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