There’s hardly any property investor that goes into this game with the aim of losing money. Everyone wants a good return on their investment. This is more so true for people who own HMOs. They all want the best tenants, the best rent rates and fair taxes as well as minimal to no overheads or expenses.
Of course, these are all very ideal situations that hardly ever occur in unison. But with a little research and a little creativity, you can find a way to turn every situation into an advantage that makes you more money from your HMO. Here are some simple tips on how to squeeze more value our of your HMO.
Create more living space
This involves extending out your property. You can do so by either putting up new structures within the available space. Maybe build an extra extension in your backyard. You can make this a two-storey extension that will create space for at least two more tenants. You may also choose to subdivide the space within the existing structure further. If you have a huge sitting room, why not put up a wall and subdivide that one big room into two different bedrooms?
As long as you are in keeping with the construction regulations of your local Government and make sure that you are not squeezing your tenants into too small a living space, then you can create more room and give yourself an opportunity to earn more in terms of rent.
Turn your garage into an extra bedroom
If you are not too keen on stripping down communal space or making the existing rooms within the house any smaller, why not look for extra space elsewhere. Most homes have garages that they really do not use. This is especially true if you are converting your home into an HMO. Who would have rights to the garage? Certainly, all your tenants can’t share that space harmoniously.
To avert any potential quarrels and misunderstandings, why not convert that space into an extra bedroom? This should be simple enough to do since the garage is a room on its own already. All you would have to do is seal up any unwanted access points, insulate the place from natural elements and stick a bed in there.
Put some flare in your interior design
The typical pictures you see advertising HMO vacancies paint a very drab and dull picture of many HMOs. All you will see will be a bed, a poorly painted wall and maybe some carpeting. What if you went a step further and went out of your way to make your rooms look attractive? We are talking new paint on the walls, made beds, maybe a couch or some top notch carpeting. As long as you can make your rooms look anywhere near as good as those you see in 5-star hotels, you should be justified in asking for a little extra when it comes to rent.
As we mentioned earlier, it will take just a little bit of creativity and imagination to squeeze more value from your HMO. Most of these tips and tricks do not cost that much extra money.