Making Your HMO Property Investment More Passive
If you think you can run a Professional HMO passively and simply hire a management company, you are probably misunderstanding what you might be getting yourself into with your property investment. Firstly we do Professional HMOs and Social HMOs. Professional HMOs you will have tenants that pay late…not pay…steal beds…yes this actually happened with a tenant last week….basically you will have drama. Conversely we do Social HMOs, They are a complete pain to get passed with all the inspections and reinspections however once they have been signed off…these social HMOs cash flow passively. No voids..no maintenance…no management…just a monthly bacs payment…
If you go the Professional HMO route…Automate.
Try to make the simplest actions to automate for free. Set them up to auto-deposit or draft directly to and from your business account the first time. Have tenants pay online via BACS…Be on top of it and watch your bank statements to catch any mistakes or no payments that may pop up.
Create systems to be more passive. Tasks like listing openings, screening tenants, showing properties, signing leases, and even problem-solving calls with tenants (like plumbing issues) can be dealt with much more efficiently and with less stress when you create a system for each situation. Know what the issues are ahead of time and automate. Once you know what the issues are and have automate…take the next step to get a virtual assistant. Know the predictable, regularly occurring tasks as a landlord, and give it to a virtual assistant. However you must check and verify the process has been accurately achieved.
Another issue…more with flats are separate utilities….this will save headache and time…
Any thoughts to share on automatons?