Your Guide To A Lucrative and Passive HMO Property!

 
18/10/2020

Right Room are pioneers of the HMO Management model for maximising landlord returns in the rewarding, yet challenging London market. 

Finding tenants the right room is our speciality! No pun intended. Just as important, finding the right tenant for your property. Procuring the tenant is only half the job

As a guide to the service and to ensure both you and your prospective tenants have a smooth start and easy settling in process, we have outlined a few things, which we feel will allow us to hit the ground running.

They are as follows:

  • Legals

  • Utilities

  • Kitchen/ Bathroom/ Bedroom Requirements

  • Cleanliness

  • Contractor Call Out

  • Communication

Legals:

The most essential component of being a HMO Landlord is following compliance, this includes the following:

  • Gas Certificate ( Conducted yearly)

  • Electric Safety Certificate ( Conducted Every Five Years)

  • EPC ( Conducted Every Ten Years)

  • HMO License - Dependent upon the Borough you are in and whatever the mandate is. If you have applied for a license in any area that requires a license, the application will cover you. Failure to get licensed can result in fines from the Council and Rent Repayment Orders!

  • Deposit Protection - A very important component, which allows both you and the tenant protection, must be done within 30 days of a tenant moving in.

Please note, all of the above are areas in which we can assist. We have an excellent network of contractors who can easily help, should you require it.

Utilities:

In order to manage the usage of the utilities, we would always recommend a strict but fair policy, which is enforced in the contracts with the tenants.

Gas/ Electric:

Where possible, a smart meter is ideal. It allows an exact read, every month and a consistent monitoring of usage.

There are two types of smart meter, one is a credit meter and the other is a top up, which can be done online, meaning there is no need to go to a shop to top up.

Most of our landlords choose to go down the route of either getting a smart top up meter and topping up once a month or simply leaving a card/ key with an allowance.

An example of this would be as follows:

The price of a room is £735 and you allow a gas and electric allowance of £35. 

The tenant would simply pay you £700 every month. If the usage goes above £35 - the liability for topping up is with the tenants. 

Please note, this is not based on maximum occupancy.

With a smart top up meter:

You would top up £35 online on the 1st of the month, to last until the end of the month. Any additional top ups would be dependant on the tenant.

Internet - 

Quite possibly, the most important component in a HMO.

We recommend getting this up and running ASAP - ideally BEFORE you have your first tenant moved in. The lead time is typically two-three weeks, so it’s always good to get it done as soon as you can.

Heating and Hot Water -

Undoubtedly - the most important component in ANY rental!

We recommend checking the hot water and setting on a timer, at least a few days before your tenant moves in and even if your property is vacant, setting the heating and hot water on a timer, will save a lot of maintenance issues.

As well as this, it’s important to get all radiators bled, especially if they have been unused for quite some time.

We would suggest to make a video of the following:

  • How to turn on the boiler 

  • How to turn on hot water/ heating

  • How to turn up pressure on a boiler

  • Show where the thermostat is located

Council Tax - 

Stick it on Direct Debit, you can choose between a ten or twelve month period.

Water - Normally done direct debit - with a semi-annual bill.

Kitchen Requirements:

The kitchen/dining area is normally the central hub of the property, we would recommend the following is provided:

  • Microwave 

  • Toaster 

  • Kettle 

  • Large Bin

  • Dining Table 

  • Chairs 

  • Functioning Extractor 

  • Washing Machine /Tumble Dryer 

  • Clothing rack

  • Fridge/ Freezer with enough storage for each tenant

Bathroom Requirements:

All of the below will ensure a relatively stress free use of the bathrooms within a flat share and more importantly, stop general wear and tear.

  • Bath Mat 

  • Shower Curtain 

  • Mirror 

  • Towel Rail

  • Functioning Extractor 

  • Toilet Brush

Communal Usage/ Cleaning Equipment:

The below will again, ensure that cleanliness is easier to uphold within the household.

  • Vacuum Cleaner 

  • Mop and Bucket

  • Dustpan and Brush 

  • Notice Board 

 


Cleaner:

A cleaner for communal areas is always an asset!

We recommend at least a monthly cleaner, if not bi-weekly.

The cleaner will take care of all communal bathrooms, corridors and kitchen.

If you already have a cleaner, we are happy to manage their timings, alternatively, we are happy to instruct our own. 

Most cleaners have a set of keys to the property, for ease of access, should you decide that is not something you want, we can align cleaner times with tenant access. 

 

 


Keys:

A set for each tenant will need to be provided, as well as a management set.

 

Communication:

Managing a HMO, like any rental property is never easy. Our goal is to make this as seamless and as passive as possible for you.

We pride ourselves on our excellent relationships with landlords and communicate across a variety of different fronts.

We recommend setting up a whatsapp group between you and your tenants/ Property Manager.

 

 

As always, feel free to contact us if we can be of any assistance.


 
« Back to Blog