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How to start investing in HMOs?

How to invest in HMOs

Before the rise of people investing in HMOs, yields of 14% were virtually unheard of. For seasoned investors, this is the promise land in a growing marketplace. Town centres across the UK have already benefitted from entrepreneurial-minded folk taking the plunge into this exciting opportunity to maximise returns. Needless to say; identifying these properties for HMO conversion has not always been the easiest, that was before the latest update to the Nimbus Maps platform.

The team at Nimbus has strived to support thousands of property professionals across the country with identifying their next project undertaking. Many commercial and residential projects have seen the light of day as a direct result of the versatility and transparency of the Nimbus Maps platform. A recent House of Commons briefing paper on HMOs stated that across England & Wales there were 497,000 House of Multiple Occupancy in existing by March 2018 with this set to grow. As a result, the wheel was quickly put in motion to support Nimbus customers with HMO tools to source the best acquisitions.

One of the most popular features for Investing in HMOs is the ability to apply ‘Overlays’ to the maps offering key geographic boundaries to such points of interest as flooding areas, greenbelt and local council jurisdictions. The same functionality was applied to the HMO market with an overlay showing across the UK all registered HMOs.

This key feature has several key benefits when sourcing an HMO:

  • Competition - The density or sparsity could indicate whether the area has a high/low demand for HMOs

  • Condition - The retrospective street view function applied with previous sales information will determine if a landlord could be willing to sell. This is because if the aesthetics have declined on the building envelope with no obvious signs of the current owner reinvesting into the property, they could be open to off-loading this from their portfolio

  • Ownership - Nimbus Maps allows you to see the title deeds and details of who owns a property or site so you can send a letter directly to the owner making the process of purchase negotiation much quicker.

  • Expansion - Assessments can be made easily by seeing the building marked clearly with its title boundaries and comparisons can be made if extended the property (increase profitability) with its neighbours.

  • Licensing - The HMO overlay has the ability to show if a HMO is licensed or a previous license has been applied for making the decision-making process more transparent.
 
If you have enjoyed this blog and wish to know more about the benefits of sourcing an HMO through Nimbus Maps, book a free personalised demo today!

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