We have many investors asking us our opinion on HMOS. HMO stands for Houses in Multi Occupation, so basically a shared home. In Swindon, the number of HMOs has increased in the last 5 years, mainly due to tenant demand and the need for lower cost housing in the SN area.
We have noticed many changes in the tenant’s requirements recently – unless you have adequate showers (en-suites are preferred), high speed broadband and top end fixtures and fittings are a must, you will struggle to attract the right tenant and importantly the right rent. The other question that frequently comes up, is the type of residents already in the home. Most professionals want similar age group neighbours and also want to ensure they are of similar mindsets.
When working out if a HMO is for you, we recommend you do the sums at 80% occupancy as no landlord will have 100% of rooms let over a 5 year tenancy. Rentals are set between £400 a month to £595 a month inclusive of bills, with the standard and size being the main factor in achieving top end rents.
To take a look at our standards, please see some examples of rooms on our website here!