HMO stands for ‘Houses in Multiple Occupation’. It can also be called a ‘shared house’ or a ‘multi-let property’.

It is essentially a shared house where three or more people rent individual rooms and share bathroom and kitchen facilities.

As an investment HMOs are easier to manage than several single occupancy buy-to-let properties and provide landlords with the opportunity to maximise rental income from multiple rooms, while maximising the impact of voids and non-payment.

Rental yields can be as much as 3 times higher

There are less (impactful) rental void periods. If one tenant moves out, you still have other rooms tenanted. With a single-let, arrears can mean the entire income on a property.

There can be tax advantages to investing in HMOs in that more of your costs may be tax deductible.

Tenant demand for flexible, affordable housing is increasing due to changing demographics and lifestyles in the UK.

Family dynamics are changing, more people are living alone or with friends.

Rising house prices are stopping first time buyers getting on the property ladder.

Single room lets are a flexible and convenient option for many working professionals.

They are an attractive option for people who want to live more economically in a property where the rent is more reasonable, and bills, council tax and cleaning fees are included in one single price.ption text goes here