HMOs – or houses in multiple occupation – can be fantastic investments when managed wisely.
They can demand many times the attention of a typical rented property, and for that reason it’s not uncommon for landlords to seek help managing them.
But what actually goes into the management of an HMO, and why might a landlord want to seek this help rather than simply doing it themselves?
What is HMO management?
HMO management is, quite simply, the management of an HMO property. In the context of HMO management as a service, this is done on behalf of a landlord to save the time and attention they would otherwise need to dedicate to the HMO and its tenants.
This can sound like an impersonal or dismissive stance on the surface, but HMO management is often a wise and well-placed decision for a landlord to take. Landlords who have many other properties to manage, or other demands such as a full-time job, often cannot dedicate the appropriate time to an HMO.
Since an HMO is partly defined by the presence of at least three occupants who aren’t from the same household, any HMO property is going to involve a minimum of three separate tenancy agreements. That is in addition to managing the tenants themselves – for example, their needs as residents and the necessary admin – and the all the usual business of letting a property responsibly such as organising gas safety checks and ensuring good maintenance.
HMOs can be seen as a greater fire risk than standard residential properties, meaning there will be more cost to sink into safety measures like smoke alarms, fire safety doors (for the increased number of rooms), and other equipment like fire extinguishers.
HMO management can also involve needing to manage disputes within the HMO itself if problems arise between tenants. This can be common for any group of people sharing a living space, so landlords may find their skills in diplomacy and mediation being tested in situations that don’t have clear answers or resolutions.
More tenants mean greater use of facilities, which can lead to more frequent and costly maintenance of appliances, communal areas, and gardens. While there is some responsibility on tenants to keep the property clean and in good condition, that ultimately extends only as far as their agreement states, and in situations where every tenant leaves at once – such as may be the case in student HMOs – this leaves you, the landlord, with the task of tidying up in their wake.
HMO management is undoubtedly much more complex than standard property management due to the number of involved parties. Dealing with multiple tenants within a single property means many more opportunities for challenges and complications to arise, which can quickly tax a landlord’s energy when they compete with other demands for time and attention.
Do estate agents manage HMOs?
Yes. Estate agents are a great option for landlords who need help managing their HMO properties. In fact, estate agents can lend their services from the very first day, sourcing tenants and dealing with the necessary referencing to get an HMO filled as smoothly as possible.
Once tenanted, estate agents can provide ongoing HMO management to ensure that resident queries are answered and dealt with promptly. This can be vital in the case of emergency situations like boiler failure or serious property damage that needs fast repair. In such cases, a quick conversation between landlord and agent can set up the resolution and lead to fast action.
Left solely in a landlord’s hands, this would leave one person to ascertain the issue, seek out tradesperson quotes, and book the work for as fast as possible. Estate agents have the advantage of working closely with local traders like plumbers and builders, forming strong and reliable working relationships that mean situations are resolved quickly.
Estate agents can also provide landlords with advice to build their experience and fill in knowledge gaps. This means that while property investors have their burdens lightened with active help in the management, they are also building a strong base of knowledge and experience to help them make future investments wisely.
For those unsure if property management for an HMO would be a good choice, it’s always best to open a dialogue with a local estate agent and talk to them about their services. Find out what they already manage and what their chosen approach to property management entails.
HMO Property Management in Salford
Covering an extensive region of different towns and vibrant locales, Salford can be a tricky market to understand due to the various factors that affect property within its borders.
Thankfully, Mistoria Estate Agents Salford understands the market and the area itself on an intimate level. Our team has a wealth of experience to draw upon, allowing us to give property investors in Salford the best level of advice and guidance in their choices. Student HMO management in Salford can be a simple and profitable venture with the help of our knowledgeable agents on hand.
Managing HMOs can be complex with sourcing and managing multiple tenants under a single roof, but we ensure that your tenants are well-cared-for and that your investment is running smoothly. Our membership in the National Landlords Association (NLA) and regulation by the Association of Residential Letting Agents (ARLA) leaves you with peace of mind that we’re making the right choices for your property every time.
Mistoria Estate Agents is one of the leading estate agencies in the North West. Our award-winning work has made us a premier choice for property investors and landlords who want to see the best returns from their properties.