Invest in HMO Property Edinburgh
Short for “House of Multiple Occupancy” – HMO properties in Edinburgh can be among the best performing rental properties, given the high rental yields they offer.
A general lack of multiple occupancy property in Edinburgh along with an ever-increasing student population means that there are high levels of competition and minimal void time when it comes to property rentals. This, in fact, makes HMO property a very attractive investment proposition for Edinburgh landlords.
Learn more about HMO investment properties in Edinburgh by joining the property investment club and also get a quarterly investor review by signing up below.
Why Choose Glenham for HMO Property Investments?
HMO properties can be somewhat complicated in contrast with regular flat rentals – fortunately the property experts at Glenham can make the process a walk in the park, no matter what your investment goals.
We have been specialising in HMO property investments for a decade – helping Edinburgh investors and landlords deal with all the legal implications associated with owning an HMO, and, ensuring that their HMO property is certified by The Council.
In addition, we also offer complete support with finding appropriate tenants as well as maintenance and upkeep of your property. We know how to take all the cumbersome, back-breaking work and stress out of being a landlord – just take our word for it!
It’s important to be familiar with the basics with HMO – for example, what really qualifies a property as HMO?
A property can only be termed ‘HMO’ as long as three or more (unrelated) individuals live in the same property, where the toilet, bathroom or kitchen facilities are shared between those individuals.
HMO properties, for the most part, greatly appeal to:
- International workers
- Individuals on a low/minimum wage
- Contractual workers or those who move around a lot for work
However, it’s fair to say that the student market is actually the largest HMO market in Edinburgh – owing to the fact that the current student population is well over 40,000.
One of our esteemed HMO experts, Amanda, has put together a few key tips to help landlords better manage their HMO property:
- Handpick property in the right area according to your market
- Maintain your property well to avoid unnecessary costs over the long term
- Choose reliable tenants that respect your property and the boundaries you set
- Avoid missing renewal/application deadlines or you’ll be charged higher fees – in a worst-case scenario, you may face legal action form HMO enforcement officers
- Choose a reputable property management agency with a demonstrable track record such as Glenham Property – which ensures all of the above criteria is faithfully met, and the HMO license as well as respective tenancies run smoothly throughout
As you carefully consider which HMO properties in Edinburgh to invest in, you can request a quarterly investor review below to provide you up-to-date information on the Edinburgh market.
Key Elements to Consider When Investing in HMO Property Edinburgh
Understand the Market
Prior to investing in the Edinburgh HMO property, it really pays to have a keen understanding of how the market works.
For instance, if you’re eyeing the student market, you should understand the most desirable spots for student living – even the best HMO property that’s miles away from the nearest university will certainly not win any hearts or tenancy agreements.
Maintenance is another critical element to consider because HMO properties require additional features that regular properties typically don’t. But before you start spending money on unnecessary upgrades, you should consult with us.
Just to give you a quick example, installing fire doors across the entire premises, when in fact, you may not even need to, is something that might lead to a lot of money going down the drain. We can guide you through the regulatory process and advise on exactly what’s needed and what’s not – to not only help you keep within the safety and regulatory framework but also drive rental yields up.
You may have also heard that HMO properties tend to receive more wear and tear than regular properties, quite possibly due to the frequency of tenants that keep moving in and out, not to mention the different walks of life they come from, as opposed to your everyday British urban family. It’s therefore important to invest in furnishings and fittings that last and are durable.
Our property team will conduct regular inspections to ensure that everything remains in tip top condition, giving you additional peace of mind.
Find the Right Tenant for HMO Property
Naturally, one of the keys to a successful property rental is good tenants that value your property like their own and respect the boundaries and/or limitations you set.
When you find appropriate tenants, you will effectively reduce the likelihood of any objections by those tenants with regard to the property having an HMO license. Our thorough screening process ensures that you sign an agreement with only the most well-suited tenants.
HMO Licensing Process
Due to the nature of HMO properties, a special license needs to be applied for through the local Council Licensing Department. Even though the license typically lasts for a year, this can vary between different licensing authorities in the UK.
Furthermore, license costs can also vary depending on the local council and the property size. In Edinburgh, the cost typically ranges between £520 and £602, for a 3-bed and 5-bed HMO property, respectively. Renewals, however, cost a little less as long as there is no licensing lapse.
Being a first-time landlord, getting an HMO license can be quite daunting – but it doesn’t have to be, when you rely on the expertise of Glenham’s HMO property management agents.
To get more insights into successfully being an Edinburgh landlord, sign-up below for our investor review and sign-up for the property investment club to access off-market properties in Edinburgh.