Complete Guide To HMOs

Two key focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. In some instances, as a landlord, you may have properties under which you are renting under a House under Multiple Occupancy (HMO) arrangement. There are special considerations for this type of situation. The following contributed is entitled, Complete Guide To HMOs.

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Estate agents are very often asked to deal with enquiries and offer assistance with the same thing for landlords and tenants: HMOs. Put basically, an HMO stands for House under Multiple Occupancy and is applicable to properties in which three or more unrelated persons live together. It sounds basic but estate agents are always having to deal with issues arising from it, be they issues with compliance to an HMO licence or questions about what rights they bring tenants, so take a moment to read this quick introduction to the HMO.

HMO advice for tenants
For a lot of people, there will come a time in life where they will find themselves wanting to live with various people outside their families. This is very common within student circles as well as for travellers and people finding jobs in new cities; whatever the reason, you can ask a good quality estate agent about how an HMO affects you.

An HMO licence has to be applied for by the landlord for any property he or she intends to lease out to three or more persons. The application must be sent to the council for a fee, variable from city to city, and then council inspections will be carried out to assess the living standards of the property. This is where real estate agents can advise you on ensuring that you sign contracts with a landlord who is definitely licenced with an HMO.

It is illegal to lease out property to three or more persons without an HMO and if tenants find themselves, unknowingly or otherwise, living in an unlicensed property it can lead to repercussions and cause problems down the line. Consequences such as evictions and prosecution are the last thing you want to take away from your experience of living in a house or flat so be discerning in choosing your next home.

Remember that inspections for HMO licences also prevent any abuse of power by holding the property to certain standards of liveability, the licence being withheld if these standards are not met.

Helping landlords with HMOs
As with tenants, the best way an estate agent can help is by way of giving the best expert advice available on when an HMO is required. Not all properties that can house three persons or more will require you to get an HMO license. Mandatory licensing is needed for buildings that have three or more stories and five or more unrelated persons per two households in the property. As any estate agent in will tell you, meeting this criterion will mean you have to get a license regardless of the location of your property.

You can elect to be both the licence holder and the manager, or simply the licence holder. A licence holder is, put simply, the owner of the property while the manager oversees the day to running of the property and the communications with its tenants. Upholding quality standards of living is essential in attaining an HMO licence and a manager can make this all the easier.

Your estate agent will also be able to provide advice on managing your property portfolio and maximising profits too. A cost segregation analysis provides a great way of making tax savings, and is just one sort of strategy you should be looking at.

As a landlord, you can appoint a manager from within a high street estate agents to deal with the maintenance of your property as a means of relieving the stress of having to do everything yourself. This means that repairs can be handled via your estate agent, requests from tenants can be sent to you and even the collection of rent can be done by a commercial or residential manager.

3 Home Improvements The 21st-Century Landlord Should Make

Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Real Estate is a major wealth-building tool. Landlords who own property must understand how to maintain and even upgrade their residential home properties in order to keep them up to code and also compete with other landlords. The following contributed post is entitled, 3 Home Improvements The 21st-Century Landlord Should Make.

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Nowadays, first-time homeowners are more likely to be in their 30s and sometimes even their 40s. Compared to our parents and grandparents, it makes no doubt that the real estate market has evolved dramatically. The price tag has increased tremendously, making it more challenging for buyers to secure the deposit and find an affordable mortgage. As a direct consequence, buy-to-let landlords find that their tenants are more likely to be interested in mid- to long-term tenancy agreements.

Indeed, the difficulty to enter the property market presents a valuable opportunity for landlords. As most tenants are keen to stay for several years, they also seek modern days comfort and facilities in their rented property. The shoe-box, dark property with a low rent doesn’t run the rental market anymore. Tenants want to feel at home, and they expect landlords to create a space that is fit for purpose.

Concrete floor

No tenant wants to look after the garden
The idyllic suburban house with a little garden is a home cliché that nobody cares about anymore. The truth is that your tenants work hard during the week to pay the bills and save money ahead of a deposit. They don’t have any time or interest in maintaining the garden. From lawn mowing to watering, a pretty garden requires a lot of effort – without mentioning money. Your tenants don’t want to spend their weekends clearing the lawn. They want to relax, and therefore, they prefer a front yard that is easy to manage. Consequently, it’s a good idea to work closely with concrete paving contractors to transform your yard into a smooth surface that can act as a cozy patio in summer. Additionally paving slabs are perfect as an impromptu parking space when your tenants receive guests.

Help your tenants save money on energy bills
Windows that let the cold air in and inadequate attic insulation have earned a place in the top ten worst rentals in history, but they are nothing modern tenants are ready to compromise. Indeed, your tenants have no desire of being cold in winter. Many know exactly what to check when they visit a property, and therefore, no landlord can afford to run rentals that waste energy. As most tenants will pay close attention to your windows, your heaters, and the overall temperature in the property, they will quickly spot any issue. But you can also provide additional support towards energy bill management by installing smart technology, which tenants can control with an app. Smart appliances and systems offer a compelling control argument for budget-focused tenants.

Give your tenants control

Switch the carpet for eco-friendly and easy-care solutions
What is the most common flooring solution? If you’re still thinking in terms of costs, you’re approaching the problem from the wrong angle. As a landlord, you need to consider flooring solutions that are easy to maintain – and therefore don’t require replacing each time you put your property back on the market. Concrete floors can be not only elegant, but they are durable, easy to clean, and non-traditional. Wood carpets share the same qualities and can be used for centuries!

Making your rental property appealing is all about putting your tenants’ needs first. Your tenants want something that is easy to manage, that provides great cost control, and that is durable – therefore, they don’t need to worry about it. From your curb appeal to your flooring solutions, it’s time to transform your rental.