3 Common Challenges in HMO Property Management and How to Overcome Them

Landlords are facing more and more challenges when it comes to HMO property  management in Liverpool, however, these challenges needn’t be insurmountable. Let’s look at some of the most common challenges for HMO landlords and discover ways of  overcoming them. 

Challenge 1: High Operational Costs for HMOs 

The cost of running a HMO is certainly rising nationwide, and landlords in Liverpool are  finding it harder to make a profit. Increasing energy costs and interest rates are causing  some to rethink their investment, so it’s clear that changes need to be implemented to ensure that your HMO portfolio is sustainable and profitable. Improving your HMO’s  financial efficiency is paramount, and so you should look for ways of reducing your  overheads while also boosting your profits.  

Challenge 2: Tenants Struggling to Pay Their Rent  

The cost-of-living crisis is ongoing, and that’s making rent arrears for HMO landlords in Liverpool a concern. Increasing rent payments and financial insecurities are causing tenants to  worry about how they’ll pay their rent, and that, in turn, is putting pressure on landlords  who have bills to pay themselves. One way of managing this problem is by requiring all  tenants to have a guarantor and having a clear procedure in place to deal with any failed  payments.  

Challenge 3: Tax and Legislation Changes 

Over the past few years, the HMO rental landscape has seen numerous tax and legislation  changes that have had a major impact on landlords, and it appears that there are more to  come. Additional HMO licensing schemes are coming into effect soon while Section 21  evictions will be scrapped when the Renters Reform Bill becomes an act. This is unlikely to  happen before late 2025 at the earliest but will depend on what happens to the Renters  Reform Bill as it passes through parliament. 

Fixed-term tenancies are set to be cancelled while the private rental sector will have to  ensure their properties all meet the decent homes standard. It’s therefore imperative for all  HMO landlords to be ready and prepared for the changes that are afoot. Our advice is to  make your HMO property portfolio as agile as possible so you can pivot and act whenever  necessary.  

Ongoing Uncertainties  

With everything above considered, it isn’t surprising that one of the biggest challenges for  HMO landlords is ongoing uncertainty. It’s impossible to know what is going to happen in the  future, and the impact that it will have on anyone who has invested in HMOs in Liverpool. It’s crucial for HMO landlords to stay up to date in the private rental sector overall. 

If you’re struggling to deal with the many varied aspects of your HMO property management  right now, using the services of a professional HMO property management company is the  best course of action.  

At Portus Lets Ltd., we can take care of the hard work of running your HMO in Liverpool. We’ll deal with everything from finding and verifying suitable tenants to rental payments and  efficiently sorting out with any maintenance issues that arise. 

Get in touch with us today on 0151 329 3538 or hello@portuslets.co.uk to find out  more about our HMO property management services in Liverpool.