In comparison to renting a property to a single family. The rental income from multiple occupants oftren result in higher aggregate rental income.
This may not always be the case. It may be that shared housing is in low demand in an area compared to single family lets. A local letting agent will help you compare how much rent you will get in each configuration to help you decide.
Unfortunetly in HMO's tenant turnover may be higher. With tenants staying in HMO's for shorter periods. This can result in higher management costs and increased frequency of decoration.
Fortunetly a tenant moving out of a HMO will only result in a small decrease in rental income that month. Compared to a whole family moving out of a property, giving you no income that month. (or until its rented).
A HMO is more of an investment than a single let. You may need to apply for licences after renovation. Perhaps installing commercial fire systems, locks on doors and reconfiguring a properties layout.
HMO's can be good investments but the answer is subjective. Results may vary.
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