We both professional and social HMO properties. Our model is to sell in order to keep more social housing HMO properties. We do not like borrowing from the banks especially they are getting more and more stringent. The social housing hmo properties have a stigma, that the tenants will destroy the property. I here this time and time again. However as much as we can have a bad apple, the social tenants are monitored by a housing officer assigned to each HMO property. We have been doing the Social housing HMO properties now for over 3 years. No drama….and plenty of dull moments.
Compare this to our Professional HMO properties. These professional HMO properties are all ensuites…generate high rents…and yes high profits…However there is a trade off. There is always drama. Even with client due diligence and back ground checks you have issues. This is why management is essential. For instance….we had one tenant try to commit suicide….We have tenants in multiple properties forget to throw away garbage or put the garbage bins outside. In one professional HMO we had within one week of cleaning a mountain of garbage accumulate magically. We have a cleaning come to the properties on a consistent basis who are our eyes and ears. On one property we had a call from a tenant that there were bugs in the kitchen. What transpired, one tenant went on holiday and forgot to throw away her chicken leftovers. I guess it was too complicated for another tenant to throw them away. Instead we had a science project growing in the kitchen….Yes drama…Yes profits.
Key is to manage the professional HMOs and cherish your tenants as they pay for you families expenses….
Maybe we should write a book ….or make a movie…or being a landlord in Manchester with Professional HMOs
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