HMO Landlord Manchester Experiences
Wanted to share our experiences as a HMO Landlord in Manchester. In the beginning we were allured by the high returns of HMOs with working tenants and LHA tenants. However the reality set in rather quickly. All those high returns are offset by voids…management…maintenance. More so the constant issues of maintenance and turnover of tenants. Yes there are many many successful HMO landlords that specialize in high end HMOs. Some of them outsource and some manage themselves.
However our experience with working tenants was a different story. Contrarily we started working with social housing and have 1 tenant who is a major PLC. Working with HMOs in this manner we feel we are making much more money . We do not have voids…they take care of virtually all maintenance…and this frees us up to find more properties and meet with investors. Investors like our properties as they are hands off and cash flow to them at 8-9%. There is the potential for both capital appreciation as well as guaranteed rent stream with no headaches. We keep some of these HMOs and we sell some of them. Each HMO property in the greater Manchester area rents for 55 per week. Outside of Manchester we get 50 per week. We look to add windows as well as partition rooms to make more bedrooms ( each room 6.5 square meters minimum). This increases the profitability of a property. On a 4 bed property on average we generate 11,400 per year and a on a 3 bed 8580 per year. We receive our monthly BACS payments and look to build a bigger portfolio. Any questions please feel free to contact us…
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