Simon tackles six common myths surrounding Houses of Multiple Occupation (HMOs), a highly profitable property investment strategy, beginning by debunking the misconception that everyone is investing in HMOs, revealing that 82% of rental properties in the UK are single lets.

Simon stresses the importance of creating high-end co-living spaces rather than average HMOs to attract discerning tenants and reduce void periods. Other myths addressed include the perceived high workload of managing HMOs, the financial barriers to entry, and the challenges posed by Article 4 planning restrictions. 

KEY TAKEAWAYS

• While many believe that everyone is doing HMOs, 82% of rental properties in the UK are single lets. The perception of oversupply often comes from networking environments where HMOs are more commonly discussed.
• The focus should be on creating high-end co-living HMOs rather than average ones. These properties foster a community atmosphere, leading to lower void periods and the ability to charge higher rents.
• Although managing an HMO with multiple tenants may seem more work than a single let, the potential profit from an HMO can justify the effort. One HMO can be less time-consuming than managing multiple single lets, especially when considering the option to hire management.
• There are various strategies to enter the HMO market without needing significant upfront capital. Options include rent-to-rent agreements, purchase lease options, and vendor financing, which can allow investors to leverage other people's money.
• Concerns about obtaining licenses for HMOs can be alleviated by understanding the requirements. As long as the landlord is deemed fit and proper and the property meets safety standards, obtaining a license is generally straightforward. Additionally, properties in Article 4 areas can still be converted to HMOs with the right planning permissions.

BEST MOMENTS

"82% of rental properties in the UK are single let properties... I promise you that is definitely not the case."

"When you have a high-end co-living HMO, people are really coming into a community... they want to be in this community."

"If you compared maybe five single let properties... I would suggest the one HMO actually is a less time input."

"You can absolutely pick up properties in an Article 4 area and still use HMOs as long as you follow the rules."

"As long as you follow those guidelines... you should be able to get your HMO license, which typically lasts five years."

VALUABLE RESOURCES

To learn more about how you can add profitable HMOs to your portfolio, register here to join online training with Simon https://property.isrefer.com/go/3-5PF/Podcast/

To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20).

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Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32.

Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk   pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors.

Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way.  How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth.

Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book.

Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.