Everyone has their opinions and their approach to risk. We love the concept of HMOs. We have completed on numerous properties in which we tenanted on a 5 year guaranteed rent with no void, no maintenance no management with the Home office appointed contract holder. We put our small toe in the water and have been pleasantly surprised. Our payments come via BACS timely and have not had one call or issue to deal with. Compare this to LHA tenants we have or even some properties we have with councils, social housing in our opinion has best experience in our property investment career in the UK. We are now in the process of selling some of the properties and with the proceeds buying more. We learned the concept from Kevin Green, buy 3 sell 1. However we are concerned about mortgages & potentially higher interest rates so we are selling 2 and keeping one.
The properties are run as a HMO however we do not have the management. We rent by the room and receive between 50-55 per week per room. This is a net number. Again…we have no voids…no management..no maintenance….Perfect for the armchair investor…We put enough time in the rehab and more into sourcing the properties…
The UK Government has a commitment to the EU to house a certain number of a type of social housing. There are more and more of these people coming to the UK. Even if the Home Office clamped down on new immigration, then this type of social housing are still located in the UK and need to be looked after. Feel confident as social housing has been going on for decades. Even if they were to lose the contract the need would still exist and would be picked up by another company. That new company would be unlikely to look for brand new houses to deliver the service so it would be sensible to think your contract would simply move over to the new provider.
Social housing is a niche that can improve your UK real estate portfolio…
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