The post-Brexit financial atmosphere is still very fragile, to say the least. Long gone are the days when you could wake up and it would be business as usual. With everyone panicking and making their own financial future plans, it is about time you learned how to make the most of your HMO. What is it that you can do to increase applications and thus better the earning potential of your HMO?
Renovate and modernise the property
The biggest effect of the days leading up to Brexit is the drop in the value of the British pound. Lower currencies definitely hurt, since landlords have to contend with a lot of expenses in maintaining the property, as well as contend with a lot of taxes.
Getting a steady stream of passive income is ideal to ease the financial hit of an unstable economy. And you can only ensure passive income by securing tenants.
Most tenants want a place they can call their home. So having a clean and decent look to the property works wonders in attracting renters. Of course, aside from looking right, everything in the property has to be functioning right.
Therefore, setting aside money to renovate and maintain your HMO is a must, if you want to remain competitive.
Time your tenancy breaks well
Around September, the demand for HMOs tends to surge upwards (by about 64%) while the supply diminishes. This effectively makes it a landlord’s market. During this period, you can demand more rent and you can place stricter terms and conditions of occupancy on your incoming tenants. But what do you do with the already sitting tenants?
That is why you need to get your tenancy breaks right. In the agreement, include a renewal clause that is triggered during this month. What that means is that come September, every tenant should be prepared to renew their agreement and take on the new rent rates as well as terms. This way, you will not be breaking any fair treatment requirements while giving yourself a chance to increase the rent either with the already sitting tenants (ideal situation) or with the new incoming tenants.
There are other things that you can do as well to increase the applications on your HMO:
- Place more targeted adverts. Find forums where your kind of desired tenants frequent and place your ads there.
- Use better, professional adverts. It is all in the packaging. You can attract more applications by simply improving the quality of your ads. We are talking about better pictures, attractive descriptions and such.
- Manage your property well. Word gets around and as soon as picky tenants, who by the way are willing to pay a bit more for comfort, hear that you have an excellently managed HMO, the applications will start rolling in.
It is all in the details. Give people what they want and you will have more and more of them trying to get in. Provide your tenants with the kind of living standards that you would personally reside in happily and they will be happy too.