My main business over the last few years has been the world of the HMO, and, as I explained earlier, I’d like to think that throughout my career as a property developer, I have worked with a conscience and strived to be as responsible as possible. And hopefully maintained competitive profit levels too.
Here’s an initial look at how I have applied all my experience and working code of conduct to rolling out HMOs properties.
If you’re reading this book as a newcomer to the property business, the first question you may have is: “What exactly is an HMO?”
Well, before I go any further, here’s what the Wikipedia listing tells us…
Houses in multiple occupation (HMOs), also known as houses of multiple occupancy, is a British English term which refers to residential properties where ‘common areas’ exist and are shared by more than one household. Common areas may be as significant as bathrooms and kitchens / kitchenettes but may also be just stairwells or landings.
Now, I’ll break it down even further, to the five types of HMOs I come across mostly.
Regular PRS (Private Rental Sector) HMO – a single house divided into self-contained rooms, usually with common bathroom and common living areas.
Large-scale PRS HMO (sometimes come under the title “Co-Living) – these would always include en-suite rooms, plus large common areas, restaurant, bar, cinema room, a gym, quiet areas, and a library. The largest I have seen has over 500 en-suited rooms, studios and one bed-room flats.
Student HMO houses – student only accommodation.
Large Student HMO – also known as ‘student pods’, which could run into hundreds of rooms.
High-spec PRS HMO – high-end look, well furnished, most rooms have en-suite bathrooms.