I personally don’t think HMO management solutions are necessary for everybody but having said that many people have many different reason why they feel it is a pessary solution to hire a HMO manager. Needless to say, there is an added expense when splashing out on HMO management solutions, so the figures need to stack up.
In this post i’ll list a few scenarios where having a HMO management would make sense:
First time Landlord: I cannot stress how much time HMO’s takes to setup, which includes conducting viewings, filtering tenants, building relationships with tenants, meeting legal obligations, and managing HMO’s in itself. This is considered a particular skill. Consequently, I don’t think I would suggest a fresh new landlord to delve straight into HMO’s; maybe start with Single Lets first, and then take off the training wheel after the experience has been gained.
However, life happens, and we’re all entitled to make our own decisions. If you do go diving into the deep-end with a HMO as your first BTL, I’d definitely consider looking at a management service, even if only for a year.
Long distant landlords: Unlike Single-lets, I don’t feel you can manage a HMO from far away. It’s extremely different to manage a HMO from a long distance, whether you’re an experienced landlord or not. HMO’s typically have much higher tenant turnover rates, more day-to-day requirements and require a lot more attention in terms of maintenance and repairs. So it’s much easier to have someone local looking after them.
Hands off Landlord & Investor: In many cases, a lot of landlords or private investors just prefer to have a complete hands off experience when it comes to managing their HMO. Maybe they live abroad or are retired and prefer to pay for someone else to manage things. This gives them the luxury of time to do other things that can occupy their time.