HMO Leasing / management recommendations?

HMO Leasing / management recommendations?

9:54 AM, 1st November 2022, About a month ago 8

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Hello, I have a six bed / three bathroom property near Wolverhampton which I am looking at turning into an HMO.

I am looking for a company to take on the management of this HMO with a guaranteed rent including covering for void periods

Does anyone have advice or experience of this or recommendations of companies you have used please?

Thank you.

Deborah



Comments

Darren Peters

14:05 PM, 1st November 2022, About a month ago

Not a recommendation but pointing out that Serco are looking for accommodation for asylum seekers. They take over the property for up to 5 years.

https://www.serco.com/uk/sites/serco-aasc/landlords

Ian Narbeth

14:33 PM, 1st November 2022, About a month ago

Deborah
Be extremely careful before signing up with anyone. Most of the rent to rent R2R companies that approach me are £100 start ups with no assets. They point out what a difficult life it is being an HMO landlord and promise to take away all my stress. What they never say is: "We have 5 years' experience managing HMOs in your area." "We can provide references from satisfied landlords." "We will give our personal guarantee so that we are on the hook if anything goes wrong."
Even if you find someone of financial substance you trust, check out the proposed R2R contract. You may need a lawyer to review it. Among other things, check who is responsible for getting licensed and what the termination provisions are. As far as your council is concerned you are just as much "the landlord" as the R2R merchant and if he/she/it has disappeared you will be their target.
My advice would be to find competent agents who act for you and take over management. Once the HMO is up and running you should never have "voids" with zero income - barring the property being damaged or destroyed - as it is unlikely all tenants will leave at once. By appointing an agent (who can be the licence holder) you retain a greater measure of control.

Deborah

19:00 PM, 1st November 2022, About a month ago

Reply to the comment left by Ian Narbeth at 01/11/2022 - 14:33
Thank you Ian for these comments. Much appreciated.

DSR

19:04 PM, 1st November 2022, About a month ago

Reply to the comment left by Darren Peters at 01/11/2022 - 14:05
I contacted them two days ago - heard nothing back to date...

Safe HMO.co.uk

9:50 AM, 2nd November 2022, About a month ago

From our understanding Wolverhampton falls within Article 4 directive. Firstly you will need to establish that your HMO has lawful planning use as this facility.

David

18:47 PM, 2nd November 2022, About a month ago

I would echo Ian's comments and suggest you google "rent to rent scam" to see what can go wrong.

Deborah

15:28 PM, 4th November 2022, About a month ago

Reply to the comment left by David at 02/11/2022 - 18:47
Thank you

David Houghton

19:10 PM, 4th November 2022, About a month ago

If you are considering benefit tenants an alternative strategy.

Two rooms per tenant, including own bathroom and kitchen. This qualifies for the 1 bed flat LHA rate and each unit can be a separate apertence which is liable for its own council tax. Benefit tenants will get most of this paid so don't care. (Over 35s) only.

Otherwise managing an HMO is time intensive, the returns can be higher. Be VERY wary of outsourced the management to someone with no skin in the game

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