HMO Property Sourcing believe that the key to successful HMO property investment relies upon three factors:
- Finding the right property
- Choosing the right tenants
- Retaining those tenants, minimising void periods
Our role is to help you find just the right investment property. This usually involves some work to convert a standard property into an HMO (houses of multiple occupants) - thankfully, we have trusted contacts who can help with the work involved.
Choosing the right tenants is crucial. This second element is usually carefully managed by our sister company, Stevenage Lettings. We endeavour to choose reliable, professional tenants to value and respects the superior quality of accommodation offered by our investors.
To create long term success and returns, investors must retain tenants. New research shows that, on average, tenants stay in a property for 18 months.
The report from Direct Line for Business shows that "9% of tenants move out, before the end of their tenancy agreement."
The Key to Retaining Good Tenants in HMO Properties
The four tips below are not revolutionary, nor are they commonplace. Hence, there is an opportunity for investors to ensure that their property management embraces these Property Reporter points:
1. Fair Rental Rates – the cost of rent is the biggest reason that people move to new properties. Pricing your rent to reflect the type of accommodation offered gives a better chance of retaining tenants. Properties refurbished by HMO Property Sourcing are presented and furnished to a high standard enabling investors to command higher levels of rent.
2. Flexibility – being open minded to tenants’ requests can help them to feel more ‘at home’, retaining them for longer.
3. Being Approachable – easy communication helps to ensure that small issues don’t become big issues. This doesn’t need to involve direct contact between tenants and investor (this is most likely with active investors). It does mean that you need to choose the right agency to manage your HMO property, which is ideal for armchair investors. For a more hands-on approach to HMO property investment, our active investor package is a better option.
4. Being Proactive – offering to help tenants before problems arise builds good relations and retains their commitment to your property. For example, if you know that flooring or an appliance is getting old, replace it before it becomes a problem.
“These points are very fair and often overlooked’” says Martin Roche of HMO Property Sourcing. “We know that minimising void periods is a crucial part of maximising HMO property ROI. These tips will help secure reliable rental income.”
To find out more about finding, refurbishing and letting HMO properties, contact us for an informal discussion.
(Image credit: https://www.thepropertyadvantage.co.uk/sell-with-us/)
