For the last year, we has been working on one of our biggest projects to date. A complete renovation of a three bedroomed house into a six bedroomed house in multiple occupation (HMO). Over the next few weeks we'll be showing you how we did this and also revealing the final result.
Our first blog post in this series will be focusing on planning and preparation and will reveal what people need to think about before changing a normal house to a HMO.
Converting a Property into an HMO
What Is A HMO?
An HMO, or House in Multiple Occupation, refers to a property rented out by more than one household, encompassing families or two or more tenants sharing amenities like bathrooms or kitchens. Such housing typically has four defining features: it serves as the primary residence, houses three or more tenants, does not form a single household, and involves rent payments.
Benefits of HMO Conversion
Landlords often opt for HMOs due to their perceived efficiency in managing rental portfolios and potential for increased revenue. The ability to collect rent from multiple tenants offers greater security, mitigating risks associated with dependency on a single household's income. Additionally, tenants may find HMOs attractive for their potentially lower rent and communal living opportunities.
Assessing Property Suitability
Properties not initially suitable for HMOs may require adjustments to meet tenant needs and regulatory standards. Beyond legal compliance, factors like space, layout, facilities, and furnishings must be considered. Local authorities conduct inspections within five years of conversion, assessing health and safety risks according to updated guidelines.
Renovation Considerations
Converting rooms and potentially restructuring space are common during HMO conversions. Engaging professionals for major renovations and securing necessary planning permissions, especially for garage conversions, is advised. Victorian terraced houses are often preferred for their spaciousness, while the decision to convert reception rooms should be weighed against tenant preferences.
Budgeting and Quick Tips
Converting a property into an HMO entails significant expenses and time investment, necessitating careful budgeting. Prioritizing outdoor spaces, upgrading kitchens and bathrooms, investing in quality appliances, ensuring readiness for tenants, and obtaining necessary licenses are crucial steps.
Licensing and Compliance
Securing an HMO license is paramount, especially under updated regulations affecting numerous properties. Licensing criteria vary based on the number of tenants and shared amenities, necessitating adherence to safety standards, including smoke alarms, minimum room sizes, and overcrowding regulations. Additional safety measures such as gas and electrical checks, fire-resistant furnishings, and emergency provisions are essential for compliance and tenant well-being.
Navigating HMO conversion requires thorough planning, adherence to regulations, and attention to tenant needs, ensuring a successful and profitable rental venture.
In conclusion, converting a property into an HMO can be a strategic move for landlords aiming to maximise rental income and diversify their portfolios. However, it requires careful planning, adherence to regulations, and consideration of tenant preferences and safety concerns.
While the potential benefits are enticing, including increased revenue streams and reduced dependency on individual households, landlords must be prepared for the significant investment of time and resources required for conversion.
From assessing property suitability to obtaining necessary licences and ensuring compliance with safety standards, every step must be meticulously executed to ensure a successful and profitable venture.
Ultimately, navigating the process of HMO conversion demands a proactive approach, thorough understanding of regulations, and a commitment to providing safe and comfortable living spaces for tenants. With careful planning and attention to detail, landlords can unlock the full potential of their properties and capitalise on the benefits of HMO investment.
Looking to have some renovation work done? Or maybe you just want to spruce up some doors. Send us a message for a no-obligation quote.