Often shunned for their dowdy, student dig demeanour, HMO (Homes in Multiple Occupation) are the private rental sector’s hottest property type moving into 2020. Letting agents and property managers should prepare themselves for more investors and existing landlords wanting to enter this once niche sector.
In fact, research by Paragon released in January 2020, revealed landlords are looking to buy HMOs more than any other property type over the next 12 months. The company’s Q4 2019 report showed landlord’s increasing appetite for house shares – with 31% of those questioned saying this was the type of property they wanted to buy – up from just 12% in Q3 of the same year.
It’s not hard to understand why, with yields in the region of 6.5%, compared to 5.6% across all property types. If you have HMOs in your portfolio – or would like to extend your management service to these specific dwellings, contact ARPM. We would be pleased to evaluate the running of your entire managed property list and suggest ways of improving efficiency, increasing profit and reducing your workload without compromising standards.
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