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INNOVATING PROPERTY be greater than the property expenses . If one out of five tenant ’ s default on a payment the other tenants can cover the property expenses , further decreasing the risk to landlords .
Why would a tenant choose an HMO over an apartment ? The UK has been in a housing crisis for many decades . Centre for Cities claims that today , Britain has a backlog of 4.3 million homes that are missing from the national housing market . They were never built . This has been a key factor behind the UK ’ s inflated property prices and soaring rental rates .
With rent increasing in the private housing market , it is usually cheaper to live in a HMO than it is to live in a flat . Tenants pay for their accommodation by the room . Prices can range from £ 350 - £ 750 depending on the size , location , aesthetics , tenancy flexibility , whether they have their own private bathroom and if bills are included .
Household energy bills increased by 54 % in April 2022 . Tenants in a shared house can divide those costs amongst themself reducing their monthly outgoings . If the same tenant was to live in a flat , all the running costs would fall on them . Since Covid the cost of living has soared across all sectors which has resulted in renters looking to tighten the belt and save every penny . More and more landlords are offering a bill included service as it removes the stress from tenants around coordinating bills and managing and price increases .
The opportunity The UK is in a housing crisis . HMO ’ s offer a solution for both tenants and landlords . Here at Parata Property , we pride ourselves on offering a turnkey solution for clients looking to get a foothold in this lucrative investment strategy .
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SA Real Estate Investor Magazine APRIL / MAY 2023 124