Investing in Houses in Multiple Occupation (HMOs) can be highly rewarding, and every investor in this space knows that the demand for rented accommodation isn’t going anywhere for years to come given the current market dynamics, but staying ahead of trends is vital for sustained success. Here’s how to future-proof your HMO, whether an existing part of your portfolio, or you’re looking to invest:
Elevate Property Standards
In today’s market, tenants demand more than affordability—modern features like high-speed internet, energy-efficient appliances, and advanced security systems enhance appeal and retention. Usable and desirable communal living space and facilities are more important than ever, and en-suite bathrooms will add further to the desirability of your HMO.
Stay Compliant with Regulations
The regulatory landscape, including fire safety standards under the Building Safety Act 2022 and Fire Safety (England) Regulations 2022, continues to tighten, but is far from insurmountable. Regular fire risk assessments and well-maintained safety equipment are vital, and more regularly now, insurers require evidence of this. Non-compliance risks costly fines and tenant safety; having this correctly managed will ensure your peace of mind, and when done correctly, should pay for itself.
Embrace Sustainability
Eco-friendly upgrades, like improved insulation and energy-efficient lighting, reduce costs and are more attractive to environmentally conscious tenants. With changes to energy performance standards on the horizon, this is more important than it has been over previous years.
Leverage Technology
Smart thermostats, keyless entry, and other technology employed by your management company can improve operations by reducing waste, cutting unnecessary cost, and improve tenant satisfaction. This, in turn, leads to higher occupancy, without dipping into rental income to cover voids or costs.
Adapt to Tenant Demographics
With diverse tenants seeking shared accommodations, features like flexible leases and tailored communal spaces ensure broader appeal. It’s important to know your market and the nuances present in every location.
Partner with a Capable Managing Agent
A skilled managing agent can offer valuable insight on the rental market to help you get the most from your portfolio and will ensure compliance with tenancy and fire safety law, as well as local authority HMO licencing requirements. There’s also the benefit of 24/7 availability, handling maintenance efficiently, to deliver a seamless tenant experience—essential for hassle-free ownership and uninterrupted sleep!
Future-proofing your HMO by embracing these strategies ensures compliance, tenant satisfaction, and long-term profitability in a dynamic market. But most importantly, you can spend your time doing what you do best, whilst letting the HMO management specialists look after everything else.
Get in touch to see how we can help.
