We support independent agents and landlords in London to maximise a properties rental yields by managing the paper work and building works from a standard home, to a HMO licensed property. Now think of the revenue potential you can gain from converting a 3 bedroom into a 6 multi let property.
We recently received an instruction by an estate agent in Walthamstow to manage their 3 bedroom house. We see a 3 bedroom property with a lot of rental potential because each room (irrelevant of its current use) is a potential home for somebody. We advised the agent to let the rooms out individually i.e. converting their living room, reception and loft space to maximise their rental yields. Sounds lovely? Read on to avoid the pitfalls and enjoy the rewards…
Converting your home or your landlords’ property to multi let dwellings seems pretty straight forward but we strongly suggest that you read up on HMO first because he laws governing properties let on a room-by-room basis can be complex. As experts in the fields, we manage the entire HMO application process and know what factors that contributes to getting your property HMO approved first time round. This is why we have become working partner with landlords and agents, taking the pressure off them to complete properties into HMO licensed dwellings without the hiccups.
Time is money
We want to ensure each room is let out as quickly as possible but converting a loft into a room can take some time and it won’t be easy for loft convertors to complete the construction with tenants in it. The entire house must be left vacant while the property is being converted for a period of 6 to 8 weeks, during which time the other rooms and corridors will be adapted to for HMO usage. We are no expert in loft conversions, but we always rely on the same company to do our works because we value quality, speed and knowledge in a loft conversion company.
HMO Space is money
Converting the loft space into 2 bedrooms with a shower room would be the most ideal scenario but this very much depends on loft space. Given that the loft room can be converted into 2 rooms with an estimated investment of £45k, the property would benefit from:
- 20% added value to the property
- Usable extra space
- Rental income
Planning permission for loft conversions are generally not required if planned additions to a property is under 40 cubic metres (for terraced properties) or 50 cubic metres for other properties. This is under permitted development rights but please ensure that no previous extensions have been added to the property when deciding for this.
By adding a loft conversion and increasing the number of rooms for HMO, the property could increase a previous rental income of e.g. £1600 to around £3000pcm. In the long run, adding an extra 1 or 2 rooms and loft conversion especially for HMO use, will pay back itself within 2 to 3 years.
Fire & Safety
HMO conversion can be a quick and swift process but bearing in mind there are strict fire, health and safety rules to adhere by. When it comes to HMO fire regulations, we have worked closely with the local HMO Enforcement Officer. A lot of landlords get worried about doing this. This is because they think that the HMO Enforcement Officer will give a huge list of expensive and sometimes unnecessary works. This is a huge misconception! The local HMO Enforcement Officer’s role is to make sure that the properties in the area are safe to use and fit for purpose.
Managing the tenants
HMOs mean landlords face a higher turnover of tenants, greater maintenance of the property. Our strong track record in HMO management means we secure our clients the maximum return, take care of tenants’ needs, and enjoy good relations with Local Authorities across London and the South East because we consistently show due diligence with the properties we manage.
Call us to see how we can help you.