A Guide To Diversifying Your HMO Tenant Base in Ipswich, England.
If you’re a HMO landlord in England with several properties, it makes sense to diversify your HMO
tenant base so you can enjoy plenty of rental demand throughout the year.
When it comes to shared properties, there are three primary kinds of tenant:
• Students
• Those on a low-income
• Working professionals
Each of these come with their own advantages and disadvantages, but here at The HMO Network,
we find that it usually works best if you choose just one type of tenant for your property instead of
renting out rooms to a mix of occupants. This minimises disputes and maximises the chances of a
positive living environment in your HMO.
An Overview of Tenant Types – Let’s look at the three primary types of HMO tenant.
Students
Students are a popular market for HMO landlords in England to target, but it’s important to
remember that outside of academic term times you’ll have reduced demand. Also, renting to
students comes with some potential risks – a greater chance of property damage, and possible
problems with neighbours due to noise.
Low-Income Tenants
This type of tenant will be receiving government benefits to cover their housing costs. There are
some advantages to targeting this market since demand is high due to a lack of available social housing, and in general, this tenant type tends to prefer a longer lease. Nevertheless, there are some
potential downsides, especially if the amount paid to the tenant by the government to cover their
housing costs isn’t enough to pay for their entire monthly rent. If there is a shortfall, the tenant may
struggle to make up the difference.
Working Professionals
This type of tenant is in full-time work and for this reason is often the tenant type of choice for HMO
landlords in England as they have a reputation for being reliable. However, it’s important to know
what this kind of occupant is looking for in an HMO to attract the best tenants for your property.
Depending on whether you’re keen to attract younger or older professionals your property may
need different amenities and features.
What Are Young Professionals Seeking?
Aged between 20 and 30, young professionals are just starting out in their careers and are typically
seeking flexibility in their living arrangements. They want to meet people and live near local
amenities like restaurants and bars, but parking isn’t usually an issue for them since they typically
use public transport. Storage, modern amenities and an ensuite are a top priority for young
professionals, and they tend to prefer short tenancies since they’re typically saving up for their own
property. No-deposit or small deposit options are especially attractive to these tenants.
What Do Older Professionals Want in an HMO Property?
Tenants aged 30 or over are less interested in the social elements of shared living, but still want easy
access to local amenities and comfortable, quality accommodation. Parking is a higher priority for
this group, and access to outdoor spaces is also popular. This type of tenant is typically looking for a
longer lease, especially if the property is affordable and offers the convenience of an all-inclusive
rent that encompasses council tax, high-speed internet, and utility bills.
How Can I Make my HMO Property Appealing to Professional Tenants?
Whether you’re aiming to attract younger or older tenants to your HMO in England it’s important to
make both communal spaces and individual rooms bright and attractive, preferably with open living
spaces to encourage a strong sense of community.
Whenever possible, try to make parking available, and organise permits for your tenants if required.
Since many working professionals rely heavily on public transport, make sure to outline local travel
options in your HMO listing with distances to the closest bus stops and train stations and consider, if
possible, adding ensuites to your rooms, since these are very popular with all ages of professional
tenant.
The team here at LEA Property Solutions (part of the The HMO Network) are on hand to make it more convenient to manage your HMO property in England. Call us today on 07464881584 or drop us an email at lucylea@leapropertysolutions.co.uk to find out how we can help make your life easier as a HMO Landlord.