The Cost of Management, Voids and Maintenance in UK HMOS
This is not from a property course, rather reality refurbishing, tenanting and managing both Professional HMOs and Social HMOs. When you start adding in management, you are speaking realistically 10-12% of rents. Multiply this by 10 years. ALOT of money!
Add in Voids. It is easy to assume you might be renting 11 months out of the year on all your rooms. At least that was we experienced. We were obbessive to rent our rooms. We did whatever it took. However we still had voids and voids cost money.
Add in maintenance. Even though we brought properties back to the brick, after 2 years we had maintenance issues. The longer we held the more maintenance. This cost money.
Now we compared to our Social HMOs that we have been focusing on for the last 5 years. We have no voids, no management, No drama, and only structural repairs.
What have you experienced?