Standard HMO Or Student Let
Standard HMO or Student Let – Which Is Easier to Manage?
When you want to let an HMO property in Liverpool your two main choices are to rent to students or working professionals. The good news is that if you manage the property effectively, both options can give great returns on investment. But which kind of let is easier to manage? Here, we look at the pros and cons of both types of let from a property management perspective.
The Advantages and Disadvantages of Managing a Standard House of Multiple Occupation in Liverpool
There are undoubtedly many benefits to letting a standard house of multiple occupation.
- The obvious benefit Is that you’ll probably receive higher rental yields paired with a reduced impact from void periods.
- If you choose the right area of Liverpool, you’ll almost certainly see demand from tenants.
The main frustration of managing a standard HMO is having to deal with several individual tenants.
- Obtaining rent from multiple people can be stressful and time-consuming.
- There is the possibility of disputes arising between tenants who don’t know each other well. This can lead to problems arising that can prove costly and stressful.
The Advantages and Disadvantages of Managing a Student HMO in Liverpool
For many years, renting properties to students in Liverpool has been a popular choice. With the arrival of more purpose-built student accommodation (PBSA), demand has dipped, but there are still advantages to letting to this market.
- Students are happy with a more minimal level of service. New students arrive at universities every year, so there will always be plenty of potential tenants.
- A student HMO still offers an attractive yield, and the short-term nature of a student let contract is good news if tenants are unruly or awkward.
- Student HMOs have a reduced risk of void periods since many tenants will sign up for year-long leases.
- Often, students will already know each other when moving into an HMO. Typically, they will be entering their second or third year of study and taking the lease with friends. For this reason, there are less likely to be tenant disputes. It may also be easier to manage rent collection since students often nominate one friend as the single point of contact.
However, some problems may arise when managing a student HMO.
- Wear and tear issues are likely to be more significant due to the nature of the tenants.
- There is a greater risk of having to deal with anti-social behaviour complaints.
Dealing With HMO Property Management Issues
There are pros and cons to managing both types of HMO rental in Liverpool but the good news is that all can be overcome with ease when using an experienced property management company.
At Portus Lets we offer a comprehensive service, managing every aspect of your HMO let, from marketing and finding suitable tenants, handling rent collection and dealing with disputes and maintenance issues.
Get in touch with our friendly team today by calling 0151 329 3538 or emailing us at email@example.com to find out how we can help you maximise your HMO rental yield with minimal effort on your behalf.