Higher Service Expectations in Professional HMOs
The days of simply delivering "room and board" are long gone. Tenants, especially young professionals, expect a living space that seamlessly integrates into their lives. "Selling points" such as en-suites, reliable Wi-Fi, co-working nooks, and well-thought-out and practical communal areas are increasingly viewed as "basics" rather than merely nice-to-haves.
Miss the mark on these expectations, and your investment will lose ground to HMO landlords that are meeting these expectations. If you consistently meet the standard, however, your professional HMO will eventually attract quality tenants who will stay longer.
How to Reduce HMO Voids
Empty rooms are dead weight. They don't contribute revenue, all while the bills continue to mount. Typically, voids in a well-run HMO are rare, but they do happen. The trick, though, is to be proactive. Here's how.
- Build a waitlist of interested tenants for your professional HMO. If your property is well-managed and in high demand, this is absolutely possible.
- Advertise early. Don't wait for a tenant to hand back the keys. Given the growing demand for housing, it's likely that you'll secure a new tenant for your HMO property before a vacancy threatens your recurring income.
- Work with HMO specialists. We work with HMO Letting Specialists, Stevenage Lettings, who know exactly what the demand drivers in our respective areas are. This takes the guesswork out of securing reliable tenants and managing our HMO properties.
- Take advantage of digital tools and platforms for marketing, rent collection, and remote property viewing to reduce HMO voids and shorten the gap between potential leads.
In my 20+ years of investing in and managing HMOs, I've rarely seen a well-located, well-managed property remain empty for an extended period of time. It's also this stability that makes HMOs a smarter bet than single-let properties.
Where are the Opportunities in HMO Investments?
Challenges aside, HMO investments also offer unmatched opportunities and advantages in the property sector.
Income resilience: Even with a vacant room, the property continues to generate recurring income.
Demographic appeal: An HMO property has broad appeal, from key workers to priced-out young professionals (and even a growing over-50s market).
Professional sector: Stricter regulations are weeding out amateur landlords and presenting a space for serious, regulation-minded investors to thrive.
Technological advantages: Smart energy and water meters, digital listings and viewings, and keyless entry reduce overhead costs and improve tenant satisfaction. Read how we leverage smart technology to improve overheads and tenant satisfaction here.
Final Reflections
There are no shortcuts or quick ways to get rich in the HMO industry. It requires a long-term mindset, resilience, adaptability and professionalism. Investors who get it right see consistently stronger returns and also enjoy the satisfaction of running an HMO property that people genuinely want to live in.
If you require help sourcing, converting, or managing your next HMO, feel free to reach out to our friendly team here. We'll be happy to talk you through the options.
Are you still unsure about taking the next step? Grab your free copy of HMO Landlord's Guide.
Frequently Asked Questions
What is a professional HMO?
A professional HMO is designed and managed to higher standards. Typically, it includes en-suites, residential Wi-Fi and co-working spaces. These HMO properties typically attract stable, higher-quality tenants.
How do you reduce HMO voids?
Proactive marketing, early agreement renewals, digital viewings, and assistance from specialised HMO agencies can prevent voids. This approach keeps rooms full and monthly cash flow protected.
