What is a HMO?
A HMO is a house of multiple occupancy. It's a property in which 3 or more people live and usually, this happens by having three separate tenancy agreements.
Learn more about HMO's and how to run a house of multiple occupancy successfully by watching the video.
What's good about HMO's?
They can make you a LOT of money. If you just rent out a house the traditional way, you'll need a lot of houses in your portfolio before you can become financially free. John Raybould's HMO's make him an average of £1200 per month each, that's pure profit.
What's John's top tips for HMO success?
- Look in the right areas and know how to find them
- Take lessons from experts such as Samuel Leeds and his team
- Know the rules and regulations
What are some rules and regulations you need to know?
Article 4 means you can't set up HMO's without getting planning permission – this is the rule in some cities and boroughs. In non-article 4 areas, you can get any house and set it up as a HMO.
Licensing! You don't need to license a HMO if it's got less than 5 occupants. If it's more, you obtain it from the council by applying online – it's not difficult but it needs to be done. The council will come and check if the house is fit for purpose, for example each bedroom has to be a minimum of 6.52 square metres. They will run through their check list and assuming you don't have a criminal record, you'll get your license.
There's more! Learn about HMO's in this video and then share it.