What is an HMO?
Even in times of uncertainty, bricks and mortar are thought of as being a safe place to invest your hard earned cash, and that opinion doesn’t show any signs of changing in the current climate.
Over the past twenty four years we have experienced a fantastically high demand for investment properties with a HMO being THE most sought after type. HMO stands for ‘House of Multiple Occupation’ but to help confuse you there are different types of HMO. A standard HMO is a residential property of any type which is let to 3 or more unrelated people who share common facilities like a kitchen or bathroom. There is then such a thing as a Licenced HMO which covers properties which are let to 5 or more unrelated people who share common facilities and is spread over 3 or more floors. What many people don’t realise is that you often need planning permission to create an HMO especially in densely populated areas. Councils use HMO licensing to improve the quality of housing and they give the steps you need to follow to run a legal HMO property that is safe for your tenants. These normally include details of minimum room sizes, the amenities needed and how to keep your tenants safe from fires. Each local council will use slightly different definitions so it’s important to know what they are and work with them to keep everybody happy.
Here in Sheffield the most popular locations for tenants wanting to live within a HMO property are fairly obvious being the areas closest to the Universities, Hospitals and City Centre. These are all areas that we here at Spencer will cover and generally speaking we will have a steady flow of available HMO properties to buy throughout the year.
If you are looking to invest in a property like this, would like some advice or have a property that you would like to sell, please call 0114 268 3682 and ask for Chris or Nicola to see how we can help.