With an increased demand for private rental properties, property dealers consider HMOs to be a great investment strategy. However, the work does not end after you buy an HMO property. Another thing such as finding the right tenants for your property is a crucial part of this process too. These tenants will reside in a separate room in your HMO property, maintaining your cash flow, minimizing the voids, and looking after your property.
How To Find Right Tenants?
Finding the right tenant is not as simpler as it may seem. For those looking to invest in an HMO property and those who already own an HMO, here’s how you can find a perfect match for your property.
1- Select The Tenant Category
There are different categories of tenants, e.g., professionals, students, or local housing allowance tenants. First, select the type of tenants you want to do your business with. Analyze your preferences; for example, if you want high-yielding tenants, look for professionals. These are ordinary people with full-time employment. Remember, each type of tenant has its upside and downside.
2- Suit Your Tenant Type to Your Area
The choice of tenant type and renting yield also depends on the area of your apartment. If it’s near campus, the demand for HMO will be higher among students; so they should be your target. But if it’s near a business district, your target audience should be working people (professionals). For example, at HMO Property Designs, we deal with both professionals and students because they make up good tenants.
3- Search And Check The Prospective Tenants
If you have rightly selected the tenant type and location, it will be easier to find the right tenants. You can look for a letting agent or select tenants based on referrals. Whichever method you choose, make sure you do a proper background check before they move into your apartment. If you hire a letting agent, they will do this part for you. It is better to get their feedback as a tenant from previous two landlords.
4- Get Your Property Ready For Tenants
It is evident that students and professionals don’t live in similar ways. Therefore, for getting a better return on your HMO property, customize the property to tenants’ types and needs. This may include providing a high-speed internet facility, more furniture, and inbuilt wardrobes. If your tenants are professionals, make sure you have space for them to work from home in a pandemic situation.
5- Meet Your Tenants Face-To-Face
In our experience, we have sometimes seen a tenant profile seem amazing on paper. But when you meet them personally, you get the idea that they will not get along well. Therefore, it is better to avoid such a situation so you won’t have to go through the whole process again. Meet your tenants face-to-face in advance to get a better understanding.
What Happens Next?
HMO Property Designs concludes that new tenant must get along well with other tenants residing at your HMO property. If they don’t, it can be challenging to deal with them. Moreover, now you also have to decide as a landlord how you will manage them. Are you going to do it yourself or outsource it? If you plan to outsource, our services are available to facilitate you.
