As a landlord you may be using a standard buy to let which is the more traditional approach and is becoming less favourable due to the tax implications with mortgage relief. The already narrow margins on your net profit are reducing even further now depending on your own taxable position.
The HMO approach is a lot more complicated and there are additional licensing requirements needed depending on your area in Bristol. If you are looking for a property which is going to have a larger return on investment an HMO may be the way forward for you.
We do source properties for our clients based on the returns so as a buy to let landlord who may be interested in some advice please get in touch and we can discuss your situation.
Some of the basics to keep in mind when looking for a suitable property, we would recommend if you are going to do an HMO stick to 5 or 6 bedrooms unless you are going to go big then go up to the 9 or 10. The margin of return and additional work involved is not really worth going to 7, 8 or 9 unless it is already rented out as such due to the permitted planning involved.
Get in touch with the Bristol City Council!!! They want to help good landlords and will be able to offer advice for the licensing and we have worked with them on number of our clients properties and bringing them up to standard.
Running an HMO needs to be a full time job and is not for the landlord/ investor who is looking simply to increase profits. If you choose us to manage the property we are already passed off by the council as a fit and proper person and able to manage these properties.
If you are thinking about being a HMO landlord / investor we have complied some must read documents produced by Bristol City Council and you can download the information below.
We offer property sourcing for HMO properties in the Bristol area and you would benefit from our local knowledge and our links with the council in finding the correct property for you.
If you would like us to manage your HMO property please get in touch today.