Many landlords are in a quandary right now about whether to continue renting out their properties, or sell up. There are a wide variety of reasons for this disillusionment with HMOs, but some of the top ones include:
- properties not being profitable
- managing agents not being knowledgeable about HMOs
- multiple room voids/low occupancy
- taking up too much time and effort
- concerns over tax, compliance and ever-changing regulations
Does this sound familiar?
Although there are HMOs for sale, some landlords are struggling to actually sell them and having viewed some HMOs on the market, it really is surprising that some selling agents do not, or are not able to, show prospective buyers all the rooms on a viewing! This can be due to not giving tenants’ the relevant notice, or because agents do not have all the keys. This might sound like a joke, but we have actually experienced this! Ensure you ask your agent to show EVERY room in your HMO on EVERY viewing. Any serious buyer of your property is going to want to be able to access every single room, so keys are important! Make sure your agent has all the keys necessary for your property and that they’re labelled clearly for different rooms.
Another problem that HMO owners are experiencing is that the selling agent they choose is not a specialist in HMOs and therefore does not have the right level of knowledge and expertise necessary. It would be somewhat like taking your car to a motorcycle specialist or your pet to the doctors – they may possess the related knowledge, but are not best placed for the job. You should be confident that your estate agent knows everything they need to, in order to answer queries and understand the best selling points of your property.
The condition of your sale might also depend on the number of rooms tenanted at the point of exchange. Find out the current status of all rooms and if any are currently void, encourage your management agent to tenant the rooms quickly. The more paying tenants you have, the more attractive your HMO is to potential buyers.
Finally, ask the agent that you’re using to sell your property, if the HMO is creating the BEST impression it can. It’s always going to be better if it’s tidy, well-maintained and respected by tenants.
If you’re struggling to sell your HMO or are having other HMO headaches, contact us to see how we could help.