I am just so proud of you two. You've come a long way over the years and seem perfectly matched for each other. Much love and happiness, even in properties!
I'm new to investing, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional, but it's very advisable that you make use of professional
Trouble with Medium to large HMO is that even though gross yields are higher, nonetheless lanlord has to foot gas and electricity bills council taxes AND repairs tend to multiply compared to small aoartnents- multiple showers. Landlord cannot control tenants using small electruc heaters that add potentially stratospheric elec. Bills. So in exam0le cited, 4 bedroom HMO, energy bills will potentually be 1k a month. Future also loooks grim for these energy costs . Moral of the story is , unless you can rely on " responsibke" hmo tenants who dont " take the piss", its better to have apartments in you're portfolio
No that's not true You have something called fair usage policy you take a deposit from the tenant. Four bedrooms is much less could be £350 a month.. they have no need to use an electric heater if there is good heating system installed. Yes you're right they can take the Mickey but you have to be on it everybody knows roughly what it costs per month and if it creeps over then you can hit them with the bill It's all about the contract and how you manage your tenants. I have a HMO and know many people who have more of them they do work.. also one more thing I will add 4 bedroom HMO is not ideal unless you rent it to social housing mears group etc In that instance you're not offsetting the bills enough. Minimum should be five preferably six beds Of course the more the better but you're talking 7 or 8 beds is a very serious project, aim for six beds and your monthly bills about £500 a month doable.. But if you can't do a 5 or 6 bed then I wouldn't unless it was built for social housing
@500res So what the tenants do is run an ext lead from the common area plug sockets. Heating they turn the oven on leaving it open. That is what scum HMO tenants do. HMO are far too risky.
Yeah that's quite excessive though I mean any decent person that's been vetted pays a deposit and is told he will be charged if bills are excessive they will respect the house We've got to be optimistic about it rather than negative though, the correct management and the correct tenants are the key. You can't just chuck anyone in there from Gumtree Of course you'll have problems they have to pass credit checks they have to have jobs checked and references. There is no quick fix to filling a property otherwise yes you will get scum bags. Electric heaters and they are banned in hmos houses they wouldn't want to risk their tenancy They're People with credit scores They're trying to get somewhere in life and they're starting somewhere
HMO can't ever work while there is the permanent threat of the VoA valuing for Individual Council Tax Banding. That is why HMO are a fundamentally flawed business model. Sll based on the VoA not individually banding when they should do. Be interesting to see what happens when LL are required to register all their letting properties. It will be very easy for the VoA to interrogate the LL Register to determine all the HMO Then compare with Council Tax records. Lots of HMO will be downvalued as they are based on one CT bill. Lenders will require coverage for increased CT. If I was a HMO LL I'd be selling up PDQ!!
Very interesting, yes, I lived in downtown San Jose for a couple years, sharing a bedroom with a couple of SJSU students. I greatly enjoyed it. In fact, were I to buy a SFH or condo (which seems highly unlikely right now), I would definitely look for roommates 🙂 great video 🙂
I would love to hear how you manage the unexpected costs of renters who don't seem to care about their impact, and whether damage etc, or they cause energy bills to skyrocketed? Can you do a video on how you manage these, landlord issues and pitfalls and how to avoid them all?
I am super curious, you refurbish the HMO's to such a high standard with accessories etc...don't people sort of, well...trash them? I mean, they're not gonna stay looking that fancy for long even with a little bit of fair wear and tear. I'm so intrigued what your attrition rate is and having to re-do rooms etc. Or maybe you dress them up for the videos & then scale them down for the actual renters which makes much more sense.
