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What Are The Legal Requirements Of Landlords?

 

If you are an existing landlord, or intend to become one soon, you need to be aware of certain regulations.

The Property Business is like any other business where you need to comply with several regulations in order to operate in the business.

Fortunately, the requirements are not that onerous, and soon become second nature.

As a landlord, you have a duty to

• take safety measures including:

-ensuring means of escape are kept clear, maintained in good order and repair, clearly displayed and signposted to all occupants.

-ensuring fire fighting equipment is kept in good order and is well maintained.

-taking all measures reasonably required to protect the occupants from injury, for example, preventing access to unsafe areas, such as roofs.

• supply and maintain water supply and drainage, gas and electricity.

• maintain common parts and installations.

• maintain living accommodation including any furniture or appliance provided by you, the landlord.

• provide waste disposal facilities.

You also need to be aware of The Furniture and Furnishings Regulation 1988, Gas Safety and Electrical Requirements.

If you are unsure of any specific requirements, you could always contact your local authority and ask them for their advice. Alternatively, a quick 30 minute search on the internet could provide you with all the answers that you require.

When starting your property business, you must comply with these regulations as non-compliance could result in hefty fines or imprisonment in the most severe of cases.

However, once you’ve bought your first property and have ensured it meets all minimum requirements, all you need to do is to replicate the processes, thus any additional property will be much easier for you to prepare for letting.

 

 

 

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Is There A Market For Multi-Let HMO Properties?

 

HMO Property Building Since Houses in Multiple Occupation (HMOs) provide much needed affordable housing, particularly for younger people, there is a strong market for such accommodation. I can only see this market growing further.

As property prices increase, first time buyers are also getting older. 5 years ago, it was common for a sub-30 year old to purchase a property. However, because of the current house price/income ratio, it’s uncommon for anyone below the age of 30 to be able to afford a decent property without raising a huge deposit.

Therefore, people are ‘forced’ to rent. Those that can afford to, will rent out a single bedroom flat. Otherwise, it is more common for groups of friends to live together in 2+ bedroom houses and flats.

A tenant will often think to himself, why pay £700 per month on a mortgage when you can rent a single room from £200 per month depending on where you live. This has created a huge demand for HMO landlords who need to fill rooms in their multi-let properties.

The type of people that would want to live in such accommodation include, but are not limited to:

• Students
• Nurses
• Doctors
• IT contractors
• Shop workers
• Airport workers
• Newly qualified graduates
• Asylum Seekers
• Housing Benefit tenants
• Recently divorced tenants
• Foreign (non-uk) citizens
• Etc.

In fact anyone, who enjoys living with other people. I get several calls a day from the above types of potential tenant looking for individual rooms to let in a property.

So if you are looking to purchase an investment property to let out to sharers it may be worthwhile to determine where these sorts of people would like to live. Once you have shortlisted several such areas, you can focus your efforts accordingly.

 

 

 

HMO Property Riches Book Javaid KiyaniClaim your FREE Property Course here:

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HMO Properties Are A Great Way to Get Extra Cashflow

 

HMO Property InvestingA House in Multiple Occupation (HMO) is a property that has been let out to sharers rather than a single family unit. These sharers can be anyone from students to professional employed people.

I am often asked by would be and established property investors, why I invest in HMOs.

My answer is simple: CASH. By letting your house to sharers you can receive up to 300% of the income that you would otherwise get. However, it is more common to achieve on average 100% additional cash flow.

With this additional cashflow, you can invest in further property acquisitions or go on that much needed holiday!

The reasons I love HMOs so much are because:

1. I get immediate and greater cashflow than I would not normally get from a single-let unit.

2. I still get the long term capital growth.

3. I do not need to fill all rooms to get a return on my investment!

In my opinion, the enhanced cashflow outweighs any disadvantages such as possibly higher maintenance costs. Once you have your system in place to deal with HMOs, the disadvantages will feel like nothing, and you’ll wonder why you never considered multi-lets before.

If you are still uncertain about HMO properties, I would suggest you sit down and do a quick calculation.

A 3 bedroom house with a downstairs lounge, that would normally rent to a family for £600 per month could bring in £1,040 pcm if you were to rent each of the 4 rooms out at £60 per week; that’s an additional £440 pcm, ie. an extra £5,280 per year!

You only need to do this a few times before you start seeing amazing returns on your investment.

So next time you’re looking for an investment property, you should definitely consider converting it to HMO use. Try doing it for just one property – make it work for you and then replicate your successes.

Once you have developed a system to manage your HMO properties, you will find it’s no more work than managing a portfolio of single-let properties.

 

HMO Property Riches Book Javaid Kiyani

Claim your FREE Property Course here:

http://www.hmopropertyriches.com/

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