HMOs remain a strong investment choice in today’s market. Rising demand for affordable, flexible living arrangements, coupled with an increasing population and shrinking household sizes, has created a steady market for HMOs. Economic pressures mean more people are choosing to share accommodation to reduce living costs, making HMOs a reliable option for landlords seeking stable, long-term rental income.

HMOs offer a significantly higher ROI than traditional single lets. While single lets typically generate an ROI of 5% to 7% (and as low as 2% to 3% in high-demand areas like London), HMOs often deliver a minimum ROI of 15%, with many investors achieving returns of 20% or more. This is because multiple tenants share the property, increasing the total rental income without a proportionate rise in expenses. HMOs are particularly attractive to investors seeking high cash flow and rapid portfolio growth.

To purchase an HMO, you typically need a 25% deposit for the property, along with additional funds for legal fees, Stamp Duty Land Tax (SDLT), and any refurbishment costs. If you’re converting a property into an HMO, you’ll need to budget for a more substantial refurbishment, which could range from £75,000 to £100,000 for a six-bed HMO, depending on the finish and local labour costs. Momentum investing can help you refinance and recycle your funds, enabling you to expand your portfolio with less upfront capital.

Yes, new investors can successfully enter the HMO market, even without prior experience. While HMOs are considered a more advanced strategy compared to single lets, with the right training and guidance, many beginners have successfully set up profitable HMOs. A step-by-step approach, such as following a structured programme, can teach you how to source the right property, navigate licensing and regulations, manage refurbishments, and attract reliable tenants. It’s essential to educate yourself to avoid common pitfalls and maximise returns

Absolutely. For investors with experience in single lets or other property strategies, HMOs provide an opportunity to significantly increase cash flow and profitability. If you already have a portfolio, adding HMOs can diversify your income streams and accelerate your portfolio growth. Experienced HMO investors can also benefit from advanced strategies like managing larger properties, creating high-spec HMOs to target professional tenants, or expanding into more lucrative areas with higher demand.

In most cases, the landlord covers the cost of utility bills, including electricity, gas, water, council tax, broadband, and sometimes a TV licence. Tenants pay a single monthly rent that includes their share of these costs. This setup is convenient for tenants and can be a cost-effective alternative to renting an individual property where they would be responsible for all utility expenses. For landlords, it’s important to monitor usage and budget for rising energy costs when setting rental prices.

In areas with a high number of HMOs, competition can be fierce, but success lies in standing out from the crowd. Many HMOs are poorly designed, with basic furniture and outdated décor. By creating high-quality, well-furnished properties with a modern finish, you can attract tenants willing to pay a premium. Conduct thorough market research to identify tenant demand and understand what features they prioritise, such as en-suite bathrooms, communal spaces, or fast broadband. Differentiating your HMO can help you consistently achieve higher occupancy rates and better rental returns.

Yes, buying HMOs using other people’s money is a common strategy among successful investors. Options include private loans, joint ventures, or working with angel investors. The key is to demonstrate that you can find profitable HMO opportunities and structure deals that provide value to both parties. Training programmes often include modules on attracting and working with investors, helping you build confidence in using this method. Leveraging other people’s money allows you to scale your portfolio faster without being limited by your personal finances.

If you enrol in the programme and later decide that HMOs aren’t the right strategy for you, there’s no risk involved. Most programmes offer a satisfaction guarantee, allowing you to request a refund within a specified period, such as 14 days. This ensures you can explore the material and make an informed decision without financial pressure.

Yes, many investors successfully manage HMOs remotely, even if they’re based outside the UK. Remote investing involves building a reliable local team to handle property management, maintenance, and tenant relations. Social media and live networking events can help you connect with local professionals and establish a power team. With the right support and systems in place, you can oversee your HMO investments from anywhere in the world.