What to Charge for Professional HMO Rooms
This question regarding rates for Professional HMO rooms came up. Firstly, there are two main points…Professional HMOs obtain higher rents than houses…albeit higher costs and some more management. Next, there is a variance among areas.
Generally however, generally for a large sized HMO end terrace i.e. five or more letting rooms, the total rent for all the rooms usually comes to about three times what you could charge for the whole house or flat. This makes a huge difference in yield. This is why we focus on Professional and Social HMOs.
We prefer en suites as they rent for higher and the tenants stay longer. The amount of rent to charge for each room depends on the size and quality of the room. New refurbished properties attract a premium. We seek to have that Wow effect. Prices for a nice double room with ensuite usually charge £90 and for a small room charge £50 or £60. However we go higher. Most of our en suites rent for 110 on a low side up to 125. We feel it is worth investing more in order to get higher level tenants and higher rents.
You should always seek to see what your competition by postal code is charging by looking at Spareroom.co.uk
Look at the level of the rooms and what we do is try to have the nicest rooms at a fair price…Hope this helps…