HMO or straight unfurnished let?

HMO or straight unfurnished let?

13:18 PM, 28th January 2016, About 6 years ago 11

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We are about to purchase our second investment property in SE London. It’s a 2 bed semi and could easily be converted to 3 bed by using a downstairs room. HMO

The straight unfurnished let should achieve a gross rent of £1400 per month . Letting 3 rooms individually could achieve circa £1800 – 2100 per month but the property would then be classed as an HMO which we have no experience of.

Our tenants would be young professionals probably working in London 1/2 hour away from Station which is a 7 min walk.

From people with experience of running HMO’s what are the key benefits and risks vs a straight unfurnished let? We are retired and this will be pension income for my wife .

Should we get a licenced professional organisation to set it up and run it ?

Christopher



Comments

by LondonProperty1 L

11:17 AM, 29th January 2016, About 6 years ago

One more thing... Do not get convinced by the estate agents that they have some superior knowledge of regulation. Spoke to a letting agent from Foxtons who bragged how many £millions of revenue he brings each month... And about his knowledge of the regulations and pricing (all BS). Asked him about Additional Licensing in Southwark and he had no clue about it. Told me 'it is impossible it is being discussed because he manages this area and he would have known'. Professional agent my a#%\ if you ask me.

Get help from this or other forums on specific issues - especially when you are retired and have time. It is always (at least for me) quite interesting to find out about these things and always stimulates your mind. Think about it as an alternative to reading books, which saves you money.

Best of luck again!


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