How to Find and Keep Good HMO Tenants
Landlords often believe there’s no such thing as a perfect tenant. In fact, one of the most challenging things about renting an HMO property is sourcing the right tenants!
To maximise your ROI, you need to ensure you’ve found tenants who not only pay rent in full and on time, but also take good care of your property. While it shouldn’t present too much of a challenge, it can often be harder than you imagined when you’re trying to deal with everything yourself.
As experts in the field of HMO management, our team at Portus Lets have some helpful advice to point you in the right direction.
1. Be Clear About Your Target Tenant Demographic
Before renting out your HMO, you need to be extremely clear about your target tenant demographic.
- Do you want to rent to students?
- Young professionals?
- Social housing referrals?
All HMO investors have their own requirements and preferences but getting the correct tenant type for your property couldn’t be more important for your bottom line.
It’s always wise to avoid mixing different tenant types. For example, young professionals and students are unlikely to be a good mix. Finding tenants who are within a similar age bracket and who have similar lifestyles is the best way to reduce friction and ensure your tenants enjoy the best possible living situation. It’ll also help to eliminate any disputes.
2. Creating Your HMO To Appeal to Your Tenant Demographic
Part of getting the best tenants for your HMO in Liverpool involves giving your tenant demographic the living experience they need, want, and indeed, expect. Knowing your ideal tenant’s demographic is just the first part of the process. You then need to ensure your HMO is the right kind of property for them to live in by furnishing and decorating it in a way that suits their requirements.
3. Carry Out Thorough Background and Reference Checks
Although it can be tempting to rush in and accept the first tenants who show an interest in your HMO, it’s important to apply rigorous criteria and ensure you’ve carried out appropriate and thorough reference and background checks.
No matter what type of property you’re renting out, you need to be certain that the tenants you accept are reliable, trustworthy, and are unlikely to cause problems. However, when you’re renting out an HMO, it’s even more important to complete your background checks properly. After all, you don’t want to risk losing your other tenants because one problematic individual is causing trouble in the property.
4. Keep Your Tenants Happy
Finding good HMO tenants is important but it’s equally vital to retain them. A high turnover of tenants is time-consuming to deal with and can lead to costly void periods that eat into your profits.
Every time you lose a tenant, you must spend money and time on advertising the property, carrying out viewings, doing background checks, and drawing up paperwork. That’s why it’s so important to be the best HMO landlord you can be.
Keeping your tenants happy is the best way to keep them in your HMO for the long term.
- Spend time proactively identifying potential issues and working hard to resolve them as quickly as possible.
- Communicate effectively with your tenants and try to understand any problems they’re experiencing if they’re having difficulties.
Bear in mind, though, that you shouldn’t be too soft on your tenants either. You need to be fair, but you also need to feel able to say no if your tenants are making unjustified requests.
5. Using A Professional HMO Management Company in Liverpool
Finding and retaining good tenants is something that proves challenging for many HMO landlords, taking a lot of time and effort. Using the services of an experienced and professional HMO property management company is, therefore, the best course of action. Taking the hard work out of your hands, our team at Portus Lets will manage every aspect of your HMO lettings, from finding and vetting prospective tenants to collecting rental payments and addressing any issues that arise.
Get in touch with us now to find out more about how we can help you.