Professional HMO Property Nightmares in the Making
This week we had two separate phone calls from London investors asking if we will do the refurbishment works on Professional HMOs. We explained that we only provide ready made tenanted cash flowing Professional HMOs and Social HMOs. The London investor asked why…I explained there are so many issues that come up during refurbishment as well as said at the end of the day it is the same work. As our builders are busy I did not have any suggestions other than one….however told them both to get at least 3 quotes. More so I told him it usually costs us between 40-50k depending on number of rooms ( 4-6 rooms) , HMO ensuites and condition of the property.
We spoke more…I was completely shocked when he told me what he paid for the property…However that was nothing….I quickly realised it was in Article 4 area. I asked him if he knew it was in article 4 area of Salford. He had no idea what Article 4 is….I did not want to destroy his day so suggested he do an internet search.
This poor London HMO investor….over paid for a property that he thought he could convert into a HMO….however he would have to jump through alot of hoops if at all if he could even convert to a HMO.
The other phone call was really no different….Like moths to a fire…this London investor already owned a 3 bed house and wanted to convert to a Professional HMO in Salford and did not know about Article 4….He was also asking if we could do the refurbishment supervision and he would pay us 2k… Furthermore he was trying to convince me he could rent for 140 a week with a nice standard a non ensuite HMO room.
Bottom line….there are so many people who have no clue about Professional HMOs. They might go to a course and not do their property HMO property homework.