HMO Investment – UK HMO Investment Service

Welcome to HMO Investment: Your Gateway to Superior Returns

Part of the HMO Advice Group

Are you a private landlord, a property investment group, or a multi-property landlord looking to significantly boost your annual ROI into double figures?

At HMO Investment, we make that happen for you.

HMO Investment Service

We specialise in identifying, optimising, and managing properties that deliver exceptional financial performance in the UK’s dynamic rental market.

With over 500 HMOs under our management in the last 10 years, we provide the most comprehensive service from property sourcing and conversion to full management, ensuring up to 97% occupancy across our portfolio. Our expertise means achieving a double-digit annual ROI is not just possible, but within reach.

Whether you’re seeking to acquire and convert a property into a profitable HMO, optimise an existing portfolio for higher yields, or transform commercial buildings into thriving, managed HMOs, our strategic insights and hands-on support empower your investment journey.

Why Choose HMO Investment?

Superior Rental Yields: By renting out individual rooms, you create multiple income streams from a single asset. This “rent-per-room” model typically generates gross rental yields two to three times higher than comparable single-let properties.
Diversified & Stable Income: Multiple tenants mean diversified income. If one tenant moves out, the income from others helps cover expenses, ensuring a more stable cash flow than a fully vacant single-let property.
Consistent Market Demand: The UK’s demand for shared accommodation remains strong, driven by young professionals, key workers, and students seeking flexible, affordable, and well-located living solutions.
Economic Resilience: HMOs tend to perform robustly, even during economic shifts, as affordable shared housing becomes even more appealing.

Illustrative Investment Potential: A Real-World Example

Let’s look at the potential of a typical HMO investment facilitated by us:

Purchase Price: £500,000
Associated Costs (Licensing, Planning, Fire Safety, Furnishing, Stamp Duty): £86,000
Total Investment: £590,000

Monthly Income (Example 12-bedroom HMO):

Average Rent per Room: £600
Total Potential Monthly Rent: £7,200
Achieved Monthly Rent (92% average occupancy): £6,624

Monthly Expenses:

Management Fee (14%): £927
Bills: £1,415
Net Monthly Income: £4,282
First-Year Net ROI: 7.25%

Long-Term Projection (Over 10 Years):

Considering 4% annual rent increases and 36% bills increase over 10 years (based on historical data):
Total Gross Rent: £963,000
Total Management Fee: £134,800
Total Bills: £200,360
Total Net Income: £627,840
10-Year Net ROI: 106% (approx. 10.64% per year)

Please note: This example is illustrative. Individual property performance may vary. We provide tailored valuations and projections for your specific investment.

Comprehensive Valuations & Acquisition Support

We submit fair offers within 24 hours of viewing, based on current market conditions. Unlike some local estate agents with unrealistic valuations, we focus on commercially viable figures for both you and HMO Investment. We don’t renegotiate halfway through a lease, and there are no break clauses, providing complete stability. We actively seek properties and tenants year-round, ensuring your investment doesn’t sit empty, even during traditionally “quiet” periods.

Expert-Led Property Sourcing & Conversion

Our expertise extends from sourcing the right investment property to its complete transformation. We manage all aspects of the conversion process, whether it’s a residential or commercial building, ensuring it’s optimised for maximum tenant capacity and appeal. This includes strategic space optimisation, internal structure modifications, and high-quality kitchen and bathroom upgrades, all with your ROI in mind.

Seamless Licensing & Compliance

Navigating the complex regulatory landscape of HMOs, including mandatory, additional, and selective licensing, as well as planning permissions (such as Article 4 and Sui Generis), is crucial. Our team manages this entire process on your behalf, ensuring your investment is fully compliant, mitigating risks, and protecting your assets from potential fines or legal issues.

Fully Managed for Your Peace of Mind

Our comprehensive property management service ensures your HMO runs efficiently, maximising your net yield and providing a truly hands-off investment experience.

Flexible Management Contracts

We understand every property and landlord’s circumstances are unique. That’s why we offer several flexible contract options:

Guaranteed Monthly Rent: Enjoy complete peace of mind with a fixed rent payment every month, regardless of occupancy.
Guaranteed Base Rent Plus Profit Share: We partner with you to achieve higher gains, aligning our success with yours.
Traditional Management: A standard management fee is paid as a percentage of the collected rent.

Our fees are individually negotiated for each property, with contractual CPI rent increases and the option to switch payment models annually.

Proactive Maintenance & Tenant Care

During the tenancy, we take full responsibility for sourcing residents, keeping them happy, and collecting rental payments. We manage all utility payments and maintenance. Our in-house maintenance team, employed on a fixed salary, means you’ll typically pay around 40% less for trade call-outs. We conduct fortnightly checks and cleaning, ensuring early detection of defects and lower costs. Annual preventative maintenance (like boiler services and gas safety checks) keeps your property in excellent order. We handle all tenant issues, from lock-outs to repairs, ensuring you have zero liability while enjoying maximum ROI.

Quality Residents, Guaranteed Occupancy

We create premium house shares designed to attract and retain the best tenants. Residents pay one monthly bill, and we handle the rest. We meticulously match like-minded professionals, primarily in their mid-20s and 30s, to foster a welcoming and friendly home. We set optimal limits on resident numbers, balancing ROI with liveability and legal requirements. Our strong relationships with companies and recruiters, plus high resident referrals, ensure a consistent pipeline of quality tenants.

Ready to unlock the full potential of HMO Investment and achieve superior returns?

Contact us today for a free consultation. Our experts will assess your property, discuss your investment goals, and provide a tailored plan to maximise your return on investment.