Hi all....anyone on her have rental properties or HMO's.. what do you think the future holds for returns?
HMO and rentals?
- Thread starter Maybach_man
- Start date
People always need places to live... and returns might even go up if people now struggle to save a deposit or get a mortgage, means people who were looking to buy might need to rent for a bit longer.
Main problem I’d see just now is being comfortable your tenants could meet the rent each month. HMO’s a major PITA but individual tenancy more likely to guarantee some rental income per month. If single tenancy and they don’t pay you’ve got nothing. Fine if you own the property outright but if mortgaged you’re servicing the loan when no rent coming in
buzyg said:Plenty of folk on here with rentals. Returns depend on how well you buy, who you rent to and so much more.
Hi i own the property outright.. so few ongoing costs.... seems to be better to convert it to HMO than to rent it as one house..
dr_john said:
Funnily enough i have one in Cromer...and we are booked as well...
Argyll Andy said:
Yes..thats my feeling over renting the whole house as one, i own it outright...
HMO if run properly should generate a greater income. Down side is a lot more decorating and general maintenance. HMO often students, though not always. Turnover often based around collage term times. Property will likely need a throughout internal going over once a year. That is a lot of work unless you are a full time landlord.Maybach_man said:buzyg said:Plenty of folk on here with rentals. Returns depend on how well you buy, who you rent to and so much more.
Hi i own the property outright.. so few ongoing costs.... seems to be better to convert it to HMO than to rent it as one house..
Single or family occupancy. Tenants tend to be older working or retired and dare I say, mostly more responsible. We only redecorate when some one moves out. Which is not very often fortunately for us. Current tenants have all been in several years.
One last thought. If the property is large you could consider creating a number of individual flats.
Maybach_man said:
I don’t know what type of property you have or rental requirement in your area but 3 of my 4 were rented directly by the Local Authority. Mine were just run of the mill 2 and three Bedroom flats/houses.
The big advantages of this was no empty periods, they paid the rent and Council Tax and utilities whether there was anyone in them or not. At the end of each tenancy they repair and refreshed the property for the next tenants. They manage the property and the tenants so the only interactions we had were if there was an issue with the fabric of the building like a leak or a shower not working etc. They covered everything else.
A disadvantage is they pay slightly less rent, about £50 a month per property, but having no void periods this was still a winning situation.
The one thing the ex Mrs struggled with was the first time someone absolutely trashed one of them. Windows, doors, kitchen, bathroom, holes in the doors, walls and ceiling £32k to repair. The Council covered every penny and still paid the rent. It happened to the same property about 6/8 months later. “Only” £13.5k this time same scenario. If we’d been renting these directly it would’ve been our responsibility so again a win win.
Again an advantage, whatever condition you give the LA the property in they must hand it back in the same condition so we got a firm in to each one before we handed it over to do all repairs and paint the whole property and the invoice for that is in with the paperwork at the LA to show the condition it must be returned in.
Our view was if we wanted out we’d get them back in a condition they could go straight to market with no expense.
Certain types of HMO could be challenging to fill for the foreseeable - specifically pads designed for professionals to crash during the week while attending the office. More flexibility being embraced by many businesses of this type should mean more home working and less demand.
Yes..Near Heathrow..so Aircrew was the original thinking...but now...?Darkangelv2 said:
Maybach_man said:Argyll Andy said:
Picture of the house..loads of work to be done. Will investigate the council thing..apparently you can sometimes get a grant. Its not far from Heathrow....so the original thought was BA crew... but thats all gone tits up im guessing...
Obviously I don't know the layout of the property. But my first thought, looking at the outside and next door. If you are serious about becoming a landlord, would be, modernise it, then sell it. Then study the market you are interested in and then use the money to reinvest in a more suitable property for the chosen market. Hope that doesn't read as harsh, it's simply my thoughts.
Can definitely see the value in what Buzyg has said, particularly during the Stamp Duty holiday which for some reason is open to everyone!
North West Surrey
My only thought is your property looks a bit large for the council option, but you never know.
Depending on exactly where it is you might have other options than just the airport though.
In 2000 my employer relocated to Windsor and as a result I got a company move to Egham. There was a really strong rental market there because not only was it near Heathrow, but there was high student demand because of Royal Holloway College and the Brunel University campus in Englefield Green. The guy that bought it was planning to rent to students for a few years.
Alternatively if you could find a company locally that had ex-pats working in the UK that might be an option. My employer in Windsor was based in the US and in the 12 years I was there we had ex-pats from Caracas, Chicago, Boston, Cleveland, Paris, Melbourne, Frankfurt and Singapore - and that was in a department of less than 20 people! Although the firm has since moved from Windsor to Maidenhead they did rent detached properties for the more senior staff.
buzyg's suggestion of moving to more smaller units also sounds like a good idea, especially as if you have one empty you are still getting rent from others.
Good luck whatever you decide.
Depending on exactly where it is you might have other options than just the airport though.
In 2000 my employer relocated to Windsor and as a result I got a company move to Egham. There was a really strong rental market there because not only was it near Heathrow, but there was high student demand because of Royal Holloway College and the Brunel University campus in Englefield Green. The guy that bought it was planning to rent to students for a few years.
Alternatively if you could find a company locally that had ex-pats working in the UK that might be an option. My employer in Windsor was based in the US and in the 12 years I was there we had ex-pats from Caracas, Chicago, Boston, Cleveland, Paris, Melbourne, Frankfurt and Singapore - and that was in a department of less than 20 people! Although the firm has since moved from Windsor to Maidenhead they did rent detached properties for the more senior staff.
buzyg's suggestion of moving to more smaller units also sounds like a good idea, especially as if you have one empty you are still getting rent from others.
Good luck whatever you decide.