Etimon's Blog


HMO Properties: Pros and Cons


HMO Properties Pros and Cons

HMO Properties Pros and Cons

First let’s start with the basics. What exactly is an HMO?   

A Housing in Multiple Occupation (HMO) rental property is one in which three or more unrelated people live in one property and share a bathroom and kitchen. Many student properties are HMO due to the desire for students to live with their peers and save money wherever possible.  

However, with the current prices in the housing rental market, many young professionals are also choosing HMO properties to rent in order to cut costs on living. HMO properties are fast becoming some of the most sought after up and down the country.  

So, what are the pros and cons?  



Expensive Mortgage:  

  • Mortgages on HMO properties tend to be much higher, and on top of this, lenders will most likely require you to pay a much larger deposit when you buy the property. Landlords insurance premiums will also be higher as there is a much greater risk in damage to the property with multiple households living under the same roof.  

Licenses and Regulations 

  • Owning an HMO property of course comes along with all kinds of red tape and administrative hoops to jump through. All the regulations of a normal property or “single-let” are much more stringent due to increased risk of damage and indeed these rules and laws tend to change frequently, and you could be caught out if you’re not dedicated to keeping astride of it all.  


  • Due to the nature of HMO’s, they are usually let out by either students or young people. This means that the risk of damage tends to be higher and the turnover rate will likely be more than double on a regular long-term single let.  

Of course, there is also the added work of finding each tenant and covering their needs separately. This takes more time and effort and may not seem worthwhile to some.  


 So now that we’ve heard some cons, what about those pros?  



Spread Risk 

  • When you have three or more unrelated people or couples renting out your flat, you of course, spread any risk. For example, if one tenant is unable to pay their rent, you at least will have the rent coming in from the other two tenants etc. With single-let properties, you could get in a bind if your tenant is unable to make rent.  

Higher income possibilities 

  • With HMO properties, landlords are able to bring in more money on each property when compared to a single let. On average, HMOs bring in about three times the return on investment (ROI) than singlelets do. This is one of the reasons they are becoming more and more popular with landlords as well as renters. 

Ride the shifting tides 

  • HMO properties are much more resistant to shifts in the housing markets: there will always be students and young people looking to live in HMO flats and the demand is extremely unlikely to dry up. Indeed, even with uncertain futures amid the current pandemic and recession, more and more people will be looking to cut their personal costs by living with other people.  


How Can We Help 

At Etimon, we can help you decide whether an HMO flat is the right thing for you.  

If you’re interested owning an HMO, speak to one of our friendly knowledgeable staff – we can help you with a range of services, from estate agency to property management and property investment to commercial letting. At Etimon, our priority is your peace of mind.  

Do you want to sell your house? Contact us today Etimon Property Agency if you have any questions – 0141 218 4426 and we’ll take care of the rest. 

Leave a Reply