A Guide To Diversifying Your HMO Tenant Base in Liverpool

If you’re a HMO landlord in Liverpool with several properties, it makes sense to diversify your HMO  tenant base so you can enjoy plenty of rental demand throughout the year.  

When it comes to shared properties, there are three primary kinds of tenant: 

• Students 
• Those on a low-income  
• Working professionals 

Each of these come with their own advantages and disadvantages, but here at Portus Lets Ltd., we find that it usually works best if you choose just one type of tenant for your property instead of  renting out rooms to a mix of occupants. This minimises disputes and maximises the chances of a  positive living environment in your HMO. 

An Overview of Tenant Types 

Let’s look at the three primary types of HMO tenant:

Students 

Students are a popular market for HMO landlords in Liverpool to target, but it’s important to remember that outside of academic term times you’ll have reduced demand. Also, renting to students comes with some potential risks – a greater chance of property damage, and possible problems with neighbours due to noise. 

Low-Income Tenants  

This type of tenant will be receiving government benefits to cover their housing costs. There are some advantages to targeting this market since demand is high due to a lack of available social housing, and in general, this tenant type tends to prefer a longer lease. Nevertheless, there are some potential downsides, especially if the amount paid to the tenant by the government to cover their housing costs isn’t enough to pay for their entire monthly rent. If there is a shortfall, the tenant may struggle to make up the difference. 

Working Professionals 

This type of tenant is in full-time work and for this reason is often the tenant type of choice for HMO  landlords in Liverpool as they have a reputation for being reliable. However, it’s important to know  what this kind of occupant is looking for in an HMO to attract the best tenants for your property.  Depending on whether you’re keen to attract younger or older professionals your property may  need different amenities and features. 

What Are Young Professionals Seeking? 

Aged between 20 and 30, young professionals are just starting out in their careers and are typically  seeking flexibility in their living arrangements. They want to meet people and live near local  amenities like restaurants and bars, but parking isn’t usually an issue for them since they typically  use public transport. Storage, modern amenities and an ensuite are a top priority for young  professionals, and they tend to prefer short tenancies since they’re typically saving up for their own  property. No-deposit or small deposit options are especially attractive to these tenants. 

What Do Older Professionals Want in an HMO Property? 

Tenants aged 30 or over are less interested in the social elements of shared living, but still want easy  access to local amenities and comfortable, quality accommodation. Parking is a higher priority for  this group, and access to outdoor spaces is also popular. This type of tenant is typically looking for a 

longer lease, especially if the property is affordable and offers the convenience of an all-inclusive  rent that encompasses council tax, high-speed internet, and utility bills.  

How Can I Make my HMO Property Appealing to Professional Tenants? 

Whether you’re aiming to attract younger or older tenants to your HMO in Liverpool it’s important to  make both communal spaces and individual rooms bright and attractive, preferably with open living  spaces to encourage a strong sense of community.  

Whenever possible, try to make parking available, and organise permits for your tenants if required.  Since many working professionals rely heavily on public transport, make sure to outline local travel  options in your HMO listing with distances to the closest bus stops and train stations and consider, if  possible, adding ensuites to your rooms, since these are very popular with all ages of professional  tenant. 

The team here at Portus Lets Ltd. are on hand to make it more convenient to manage your HMO  property in Liverpool. Call us today on 0151 329 3538 or drop us an email at hello@portuslets.co.uk to find out how we can help make your life easier as a HMO  landlord.