HMO property investing in London is definitely one of most successful strategies when done correctly and properly.
But what are the reasons that make it so successful?
One of main reasons I believe is the demand. If property is in a good location within 10 minutes walk to good transport infrastructure then the rooms will be in high demand as long as the property is well maintained and looked after.
Adding value to the property by adding en-suite bathrooms to create extra privacy for tenants is a very intelligent strategy. In the current market tenants who work from home prefer more privacy. The funds saved on travelling can be invested in a better quality home with extra comfort.
Having an HMO property also manages your risk of voids. When a tenant moves out from one room, you still have all the other rooms bringing income in case the tenant is not found straight away. With a single let property the landlord has no income at all until the property is rented.
It also gives landlords more control. Because accessing the property is much easier legally as communal areas are shared. It’s much easier noticing if anything is not right by doing regular inspections. You should always let tenants know when you will be visiting the communal areas. Tenants have no rights to refuse the access to the shared areas.
Having multiple HMO properties can be a very peaceful and rewarding strategy, especially when the property is set up and managed in line with all regulations and fire safety.