How To Pick The Perfect HMO Tenants

how to pick the best tenants; hmo tenants, best hmo tenants

As proud as you may be of owning that beautiful HMO on that exclusive street in a highly sort after neighbourhood, if you do not have tenants living in it then it is all essentially for naught. The truth of the matter is that in the HMO business, the occupancy rate is everything.

How long your tenants stay, how many stay and how many you actually want to keep as tenants all depends on the quality of tenant you find. Yes, it also depends on the quality of accommodation you provide. But for now, let us assume that you already done everything in your power to provide your potential tenants with the best possible accommodation within the set price range.

Since you have already built it, now it is time to make them come. How do you find the right kind of tenants for your HMO? Tenants who will pay rent on time, take good care of the property, adhere to the set occupancy rules and regulation and most of all, tenants who will be with you for a long time.

How to pick the perfect HMO tenants

Choose young professionals

Young professionals are driven individuals who are planning to own their own homes at some point in the future. In the meantime, they look for beautiful establishments of which they can be proud to host friends and colleagues. They also have a tendency to know other young professionals looking for a place to stay. If you can attract young professionals to your HMO, then you can be sure that they will attract others just like themselves. They make enough money to afford the rent, they spend most of their time working and socialising so will not be too fussy about the space and they often take great care of their living area.

Corporate clients

how to pick the best tenants; hmo tenants, best hmo tenants

Collaborating with a company can ensure you’ll have a list of standing tenants ready to rent your place.

There are companies that often provide accommodation for their employees depending on the rank and purpose to the organisation. If you can find a company that has a great deal of traveling employees who go from city to city then you can be sure that you will always have a standing tenant for your HMO. These companies generally keep well-maintained living spaces on standby for their employees who may need the accommodation when on assignment in your location. Even though these spaces may not be occupied on a full-time basis, you will always be paid to keep them open just in case they need the space.

Older couples or singles

This has to be the most docile of tenant groups available in the market. Older singles or even couples do not fuss and spend much of their time at home. They like stability, peace, quiet and a clean environment. As such, they will always strive to ensure that the HMO, or at least their unit, is kept clean and well taken cared of for as long as they live there. Additionally, since they like stability, they are more likely to remain as long-term clients as long as the HMO remains favourable towards their needs.

Housing benefits recipients

If your HMO has a lower capital value to the rent ratio, then you might want to consider housing individuals who get local housing allowances from the government. These people are often long-term occupants and the return on this kind of investment is typically higher for those landlords who have chosen to go this route.

Do a bit of research and have criteria by which you pick your tenants. It is the only way to ensure that you have long-term clients who will give you a high occupancy rate more often than not. I find that attending property investors’ networking events are great ways to gather information on tenant hunting. The most common networking events are the PIN meeting events by Simon Zutshi, and the We Buy Houses Community Meetups from Rick Otton.

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