Landlord Success Story: How We Helped Increase Revenue by 25% for a 5-Bedroom HMO

 
23/01/2025

As a landlord, finding ways to increase rental income without sacrificing tenant satisfaction is key to building a successful property portfolio. In the competitive London rental market, it can sometimes feel like a daunting task. However, with the right approach and expert help, it’s entirely possible to see significant improvements in both revenue and tenant retention.

This is exactly what happened for one of our landlords who came to Right Room with a 5-bedroom House in Multiple Occupation (HMO). In this blog, we’ll walk you through how we helped transform their property and increase revenue by 25% in a short period.

 

 

The Challenge: Maximising Revenue from a 5-Bedroom HMO

Our client, a seasoned landlord, had a 5-bedroom HMO in a prime London location, but they weren’t seeing the returns they expected. While the property was in good condition and tenants were generally happy, the revenue didn’t reflect its full potential. The landlord faced a few challenges:

  • Occupancy Issues: Despite having a spacious property, one or two rooms often remained vacant for weeks, affecting overall income.

  • Underutilised Space: Some rooms were rented at a lower rate due to outdated marketing and tenant expectations.

  • Lack of Marketing: The property wasn’t effectively marketed, which meant it wasn’t attracting the right tenants or getting enough visibility in the competitive HMO market.

Our client turned to Right Room for help, seeking a way to maximise their income from the property while keeping everything running smoothly.

 

 

The Right Room Approach: Strategy and Action

At Right Room, we approach each property challenge with a tailored strategy. For this 5-bedroom HMO, we identified several key areas where we could make an impact.

1. Optimising Room Pricing and Maximising Occupancy

One of the first things we noticed was that the room rates were lower than what the market could bear, especially given the location and amenities the property offered. We conducted a market analysis to assess the going rental rates for similar HMOs in the area.

What We Did:

  • We adjusted the room pricing to reflect the demand for shared accommodation in the area.

  • We implemented flexible rental agreements to attract both short-term and long-term tenants.

  • We targeted specific tenant demographics—such as young professionals and students—who were willing to pay a premium for high-quality, well-located rooms.

By increasing the rent slightly for each room while ensuring competitive pricing compared to similar properties, we were able to increase revenue per room without scaring off potential tenants.

 

 

2. Enhanced Property Marketing and Online Presence

One of the main issues contributing to the low occupancy rates was a lack of visibility. The property wasn’t being marketed effectively, and it was losing out to better-promoted competitors in the same area.

What We Did:

  • Professional Photography: We arranged a professional photoshoot of the property to showcase the spacious, well-maintained rooms.

  • Listing Optimisation: We ensured the property was listed on all major rental platforms and social media channels, with detailed descriptions, high-quality images, and virtual tours.

  • Targeted Advertising: Through targeted ads and SEO strategies, we increased the property’s online visibility, driving more traffic to the listings.

By presenting the property in its best light and reaching a wider audience, we were able to fill vacant rooms faster, resulting in higher occupancy and reduced void periods.

 

 

3. Improving Tenant Satisfaction and Retention

Long-term tenant retention is one of the best ways to ensure a steady stream of income. We worked on improving tenant satisfaction to ensure that the property was not only fully occupied but that tenants wanted to stay longer.

What We Did:

  • Regular Communication: We introduced regular check-ins with tenants to ensure any concerns were addressed promptly and that their living experience was comfortable.

  • Upgraded Common Areas: We invested in simple but effective upgrades to shared spaces like the kitchen and lounge areas, making them more inviting and functional for tenants.

  • Streamlined Payments and Rent Collection: We introduced flexible payment options and made rent collection smoother for tenants, reducing late payments and complaints.

These efforts contributed to increased tenant retention and higher satisfaction, ensuring the property remained profitable in the long run.

 

 

The Results: A 25% Revenue Boost

After implementing these strategies, we were able to achieve outstanding results for our client’s 5-bedroom HMO. Within just a few months, the property saw:

  • A 25% increase in rental income: Thanks to higher room rates, increased occupancy, and reduced void periods.

  • Improved tenant retention: Our approach to maintaining positive tenant relations led to longer stays and fewer turnovers.

  • Greater efficiency: The improved marketing, management, and pricing strategy reduced the landlord’s stress, freeing up more time for other investments.

Our client was thrilled with the results. The increased revenue meant they could reinvest in their portfolio and explore new property opportunities.

 

 

Why Right Room Works

What sets Right Room apart is our holistic approach to property management. We focus on maximising your property’s potential by using data-driven insights, expert tenant relations, and proactive maintenance. By tailoring our services to each landlord’s unique needs, we ensure that you see real, measurable results.

If you’re a landlord looking to increase the profitability of your property, we’re here to help. Whether you own an HMO, a single-family home, or any type of rental property, our expert team can help you maximise your revenue while taking the stress out of property management.


 
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