HMO Regulations

By Matthew Moody | HMO Regulations

In 2005, significant changes were made to the Housing Act which meant that Houses in Multiple Occupancy came under additional legislation and scrutiny. 

This was to protect the people staying in HMO’s whilst ensuring that standards were nationalized and brought up to a decent and safe standard.

Generally speaking, all properties where there are more than 2 people sharing who are unrelated is classified as a HMO.  However, what this means in practice is that HMO’s need to meet national standards of rental accommodation.

None of this is too onerous and is general commonsense.Read More

Making Massive Cashflow From Property

By Matthew Moody | Property Investing

Investing is all about making a return on your money. 

Typical yields in the property market tend to be 3%-5% in the current climate for a single let.  This means that if you are paying interest on a loan of 5% plus, then you’ll be losing money if you’re heavily geared (i.e. your loan to the value of your property is more than 80%). 

With HMOs, yields are 8%-12% for a similar property based on the number of rooms.

 This means a good positive monthly cashflow can be enjoyed and you can truly run a business that brings in cash every month.Read More

Investing in HMO’s

By Matthew Moody | HMOs

The current property market is tough and cashflow is tight.

With general rises in interest rates and rents still static in many parts of the country, the majority of landlords letting to individuals (single lets) are either just breaking even or in the majority of cases subsidising the property. 

By investing in HMO’s, you are investing into a business system that can provide you and your families with a strategy that mitigates your risk, provides you with massive passive cashflow and allows you to add value to your properties.

Whether you are a first-time landlord or a seasoned player with many properties, I would always encourage everybody to have a HMO strategy within their business model.Read More

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