Converting Property to HMO (Plan)

MoneyMax

sooz wrote: »

If you are already letting the property, then it's not such a mad plan

£1800 ish PCM vs £650 is tempting

but are you achieving full market value currently? Could your £3k budget be spent to better use tarting up the current property to make it more profitable?

Hmos are a huge hassle. Profitable, but at what personal cost?

Those who choose to rent bedsits are, generally speaking, more transient & on lower wages. They are more likely to be renting for the first time, don't know one end of a screwdriver from another, & want you to be more like a surrogate parent (when it suits!). Fancy being called at midnight due to a spider? No, I'm not joking.

You might be lucky and find your rental is ideal for those with 2 properties wanting a weekday base for work.

Check out your local marketto see what other quality hmos offer.

This is what we are trying to work out, hassle V profit, especially as it's a 30 mile drive to the property from where we live!

I would want workers or students, no children.

As for achieving full market value we could go to £700 a month but we wanted a quick let at the time to cover the mortgage. The property is already in good condition to doing work on it wouldnt get us more rent. Whatever happens I will be putting the rent up to £700 next year. The family gets it paid by housing association anyway so it's not all out of her pocket.

Anyway, thanks for replying ill take it all onboard

pararct

Check the local authority plan.... Blackpool council are becoming very anti new HMO development. Unless it is already established then it is may be prove difficult to achieve PP.
The town is awash with old bed and breakfast holiday accommodation (which in the councils view do not convert well to HMO's). Ex holiday flats may be a different matter.

They are taking ever more stringent action action existing properties (and landlords) in that they are insisting each and every property complies 100% within the law. For fire alarms the local force are insisting on L2 with some sort of optical trigger.

Not saying it cannot be done just be very sure you do your homework on this one.....

MoneyMax

pararct wrote: »

Check the local authority plan.... Blackpool council are becoming very anti new HMO development. Unless it is already established then it is may be prove difficult to achieve PP.
The town is awash with old bed and breakfast holiday accommodation (which in the councils view do not convert well to HMO's). Ex holiday flats may be a different matter.

They are taking ever more stringent action action existing properties (and landlords) in that they are insisting each and every property complies 100% within the law. For fire alarms the local force are insisting on L2 with some sort of optical trigger.

Not saying it cannot be done just be very sure you do your homework on this one.....

Thanks, I want to do it all above board, including getting the correct insurance.

I know a landlord of 3 HMO's one of which is next door to my house, this was passed by the council 3 months ago. Hopefully this means they will be happy for me to go ahead.

Thanks
x

pararct

MoneyMax wrote: »

I would want workers or students, no children.

Research your market carefully. I am often in the town on business.

Blackpool has a huge unemployment problem probably one of the worst in the NW. What work there is, is seasonal = voids over winter.

It has no premier educational establishments of note bar the local technical college. There is already an abundance of student accommodation around these facilities. You may be able to get yourself on the colleges 'preferred lists' but this will depend on how well you convert your property as it will no doubt be subject to inspection.

When driving around the town there are numerous To Let signs offering accommodation, at the same time it is clear there is a lot of empty property available. Some of the signs contain such terms as 'DSS welcome but must be over 35 and with references'.

Consider your business plan very carefully, if someone if offering you independent advice think if they have a vested interest.