7 Things Every UK HMO Landlord Should Know To Stay Compliant And Profitable

HMO property management in Liverpool can be a headache for the most experienced of  HMO landlords. If you’re new to the industry, it can be even more challenging. Knowing how  to manage a HMO doesn’t come easily to most people, and with so many UK HMO  regulations in 2024, it can be difficult to avoid falling foul of compliance rules while also  turning a profit. With this in mind, let’s look at seven things you should know to ensure  compliance and profitability in your venture.  

1 – Understand Your Legal Responsibilities 

HMO landlords have various legal responsibilities that they must adhere to. You have  obligations to your tenants that must be complied with, such as meeting all HMO fire safety  regulations so those living in your property always remain safe. There are also HMO licensing  requirements to comply with, and failure to do so could put you at risk of legal action.  Therefore, it couldn’t be more important to draw up an HMO compliance checklist so that  you don’t accidentally overlook anything that could cause you to fall foul of the law. 

2 – Make Sure You’re Insured  

HMOs are deemed to be high risk properties by insurers, and that means traditional  insurance products for landlords won’t give you sufficient cover. Specialised HMO insurance  products are the best way to give yourself financial protection and peace of mind should a  flood, fire, or other unforeseen situation arise. You can also arrange cover from malicious or  accidental damage and liability claims for even greater protection for your investment. 

3 – Maximise Profits By Converting Living Spaces To Bedrooms

A great way to increase your profits as an HMO landlord is to convert any additional living  spaces in the property into bedrooms. As an example, in properties with a large kitchen,  living room, and dining room, it’s possible to turn the dining room into an extra bedroom to  generate an atractive additional income.  

Nevertheless, if you decide to take this course of action, you need to make sure that you  aren’t breaking the rules around HMO overcrowding. All rooms must meet minimum size  requirements to stay within the law.  

4 – Carry Out Smart Renovations  

Keeping your HMO property looking its best is crucial for atracting and retaining tenants,  however it can be a costly business. You can maximise your profits while also making your  HMO appealing to prospective residents by making simple changes to key areas.

Keeping the front of the property clean and tidy will create a good first impression. Adding a  doormat and a couple of pot plants or hanging baskets can go a surprisingly long way to  boosting your HMO’s kerb appeal.  

Indoors, giving communal spaces a fresh coat of paint and adding a few welcoming touches  such as throws, cushions, and lamps will help to make tenants feel at home straight away  without breaking the bank.  

5 – Boost Your Energy Efficiency  

Energy efficiency in HMOs can be a problem, but if your EPC rating is low, there are a few  simple and cost-effective steps to take to give it a boost and atract eco-conscious tenants at  the same time. Installing a smart thermostat and motion sensor lightbulbs is an affordable  way to demonstrate your commitment to saving energy while also helping tenants to reduce  their bills. Meanwhile, opting for A rated kitchen appliances will help you meet energy  efficiency requirements while also keeping costs down for residents.  

6 – Inspect Your Property Regularly  

Carrying out regular property inspections is vital when it comes to spoting any potential  issues before they get out of hand. Identifying problems at an early stage allows you to  rectify them at the first opportunity, saving you money overall while ensuring your tenants’  ongoing satisfaction. HMOs in Liverpool see a lot of wear and tear when compared to single  family rentals, so regular inspections form a key component in making sure they’re still  compliant with the safety regulations and that your tenants are all adhering to their tenancy  agreement’s terms and conditions.  

Of course, it goes without saying that all property inspections must only be carried out atier  giving the appropriate notice and not so frequently that you overstep the mark and prevent  your tenants’ enjoyment of the property.  

7 – Keep Communication Channels Open 

Dealing with HMO tenant issues in a timely manner is crucial if you want to maintain positive  tenant/landlord relationships. Poor communication only leads to frustration, and in turn,  that can lead to high tenant turnover and low satisfaction levels. Make sure your tenants  have ways to get in touch with you if they experience any issues. When they do message or  call you, respond rapidly. Keeping your tenants on side is one of the most vital elements of  HMO property management in Liverpool, so ensure communication channels always stay  open.  

Managing your HMO can be a lot of work, but with a trusted HMO property management  company like Portus Lets onboard, your workload can be significantly reduced. 

Email us today at hello@portuslets.co.uk or give us a call on 0151 329 3538 to find  out more about how we can make your life as a HMO landlord easier.