Jul 27 2020 43 mins
RESOURCE LINK
1. The HMO Experience Website (http://www.thehmoexperience.co.uk/)
2. 11 Steps to Running your successful HMO Property Business and other resources (http://www.thehmoexperience.co.uk/resources-page)
3. Sign up for weekly hacks and tips for starting and scaling your HMO Property Business (http://www.thehmoexperience.co.uk/)
IN THIS EPISODE
Your podcast hosts Matt Harris and Jamie Madill deep dive into the 6 most common pitfalls people are afraid when starting on their HMO property journey and what steps you can take to avoid making them.
If you’re looking to start your own HMO property journey, make sure you prepare yourself properly by listening to this episode of The HMO Experience Property Podcast.
EPISODE HIGHLIGHTS
Introduction [00:00 – 03:50]
Pitfall 1: Understanding The Regulations [03:50 – 09:32]
Pitfall 2: HMO’s Are An Advanced Business Model [09:32 – 14:50]
Pitfall 3: Will It Make A Profit [14:50 – 18:22]
Pitfall 4: HMO’s Are Too Expensive [18:22 – 26:25]
Pitfall 5: The Market Is Saturated [26:25 – 33:55]
Pitfall 6: HMO’s Are Too Much Hard Work [33:55 – 40:10]
KEY TAKEAWAYS
- There are pros and cons in everything we do. It’s a question of acquiring knowledge and applying that knowledge to gain an advantage and achieving the goals we want to achieve whether that be just one purchased HMO property or building a management company looking after hundreds of properties.
- Once you understand the subject matter, the uncertainty and perceived risks begin to disappear with the increase in knowledge. You still need to be mindful of the risks and being a little anxious is always good as it keeps you alert and on your toes.
- The main concerns around HMO’s are the regulations that govern HMO property and managing multiple customers in one property. If you set out with a good business approach and leverage and systemise as much as you can as early as you can it very quickly turns into a low touch and profitable business without huge capital requirements
- Selecting the right properties and client landlords to work with is essential to building a profitable business partnership. If you have too demanding or needy client landlords then the level of management required reduces your operational efficiency and has the knock on of reducing profitability
- The main pitfall to avoid on Rent2Rent is not over stating the income or understating the costs just to make a deal work. Use a good deal analyser and ensure you take the emotion out of the assessment of the opportunity
- Finally, people get concerned over being able to fill the property with good customers. If you offer the best service and have the best product (room) and charge a fair price (value) then you will get a lot of interest. It is a time honoured function of successful businesses.
If you enjoyed this episode of The HMO Experience Property Podcast, please don’t forget to subscribe, tune in and share this podcast!
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