8 June, 2023 | Investment Oracle
Renovating a HMO property is an excellent investment strategy. These properties designed to accommodate multiple tenants offer significant income potential for landlords.
Before renovation, HMO properties often bear the signs of wear and neglect. These properties may have outdated designs, worn-out fixtures, and inadequate living spaces.
Common challenges in pre-renovation HMO properties include insufficient bathrooms and kitchens, poorly utilised floor plans, and a lack of communal areas. The overall aesthetic and functionality of the property may be far from appealing to potential tenants.
If you are already convinced of the benefits of HMO investment and want to view a list of the current opportunities, please click here.
Renovation Process:
1. Conceptualisation and Planning:
The renovation journey begins with a clear vision for the property. The landlord or investor works closely with architects, interior designers, and contractors to create a comprehensive plan. They consider factors such as maximising living space, complying with building regulations, and creating a welcoming environment.
If you wanted a hands-off refurbishment HMO property which is sourced, renovated and let by a local partner, please enquire here and we can put you in touch with our partners.
2. Structural Improvements:
Renovation often involves addressing structural issues and making necessary repairs. This may include fixing leaky roofs, reinforcing foundations, or replacing faulty plumbing and electrical systems. Ensuring a solid infrastructure is essential before moving forward with aesthetic upgrades.
3. Floor Plan Optimisation:
To maximise the property’s potential, the floor plan is reimagined. Walls may be knocked down or moved to create spacious communal areas, bedrooms may be reconfigured, and additional bathrooms or en-suites may be added. The aim is to enhance functionality and create a comfortable living environment for tenants.
4. Modernising Aesthetics:
Outdated features are replaced with contemporary designs. Fresh paint, new flooring, and modern lighting fixtures can breathe new life into the property. The goal is to create a visually appealing space that appeals to the target tenant market. Stylish furniture, artwork, and décor are carefully chosen to complement the overall design.
5. Kitchen and Bathroom Upgrades:
HMO properties require well-designed and equipped communal kitchens and bathrooms. Renovation involves upgrading these spaces with modern appliances, durable fixtures, and ample storage. A focus on functionality, cleanliness, and aesthetics is key in attracting and retaining tenants.
After undergoing a transformative renovation, the HMO property emerges as a desirable and comfortable living space for multiple tenants. The property now boasts attractive communal areas, well-designed bedrooms, and modern amenities. The once dull and outdated property is now a vibrant, stylish home that tenants are proud to live in.
Benefits of Renovated HMO Properties:
1. Increased Rental Income:
Renovated HMO properties command higher rental prices due to their improved quality and desirability. The return on investment is substantial, making it an attractive option for landlords.
2. Tenant Attraction and Retention:
Renovated HMO properties are more likely to attract quality tenants who value comfort, aesthetics, and functionality. The improved living conditions encourage tenants to stay for longer durations, reducing vacancies and ensuring a steady rental income.
3. Compliance with Regulations:
Renovations typically include ensuring the property meets all relevant safety and legal requirements. This ensures landlords are in compliance with HMO licensing and local authority regulations, avoiding potential penalties.
The transformation of HMO properties before and after renovation is truly remarkable. From outdated and worn spaces to modern, stylish homes, these properties undergo significant improvements that benefit both landlords and tenants. By investing in the renovation of HMO properties, landlords can unlock their income potential while providing desirable living spaces for tenants in the UK rental market.
WHAT WE CAN OFFER
Our process begins with the identification of distressed properties with untapped investment potential, similar to the dilapidated property showcased on the left side of the image below.
Our dedicated team then undertakes a comprehensive renovation, stripping it down to its core structure. Through meticulous reconfiguration and refurbishment, we revamp the property, transforming it into a stunning space akin to the beautifully renovated property depicted on the right side of the image.
Once the renovation is complete, we take charge of the property’s rental management, catering to the needs of our clients.
You can view a list of current HMO opportunities here