When your HMO needs investment, But you don't want a large upfront bill
For many HMO landlords, the biggest challenge isn’t finding tenants, it’s getting the property to the standard needed to attract them in the first place.
We regularly come across larger HMOs that have excellent potential but need investment before they can reach their full rental value. That might mean refurbishment, deep cleaning, repairs, compliance works, redecorating, replacing tired furniture or simply bringing the property back up to a standard that tenants expect.
The problem? The cost of doing everything at once can be significant.
That’s where our approach can help.
The problem many HMO landlords face
An HMO can look great on paper, but if the property is tired, poorly presented or in need of essential works, it can be difficult to achieve strong occupancy and good rental returns.
And when several improvements are needed at the same time, the upfront cost can quickly add up.
For landlords who have already invested heavily in a property, finding another large lump sum for refurbishment and improvements isn’t always straightforward.
This can leave landlords in a frustrating position: they know the property needs investment, but delaying the work means the property continues to underperform.
Why delaying improvements can cost more
Putting off necessary improvements doesn’t necessarily save money.
A property that isn’t presented properly can take longer to fill, attract fewer suitable tenants and potentially achieve lower rents. Poor presentation can also contribute to tenant dissatisfaction and higher turnover.
In an HMO, every empty room represents lost rental income.
Sometimes, spending money on the property now is what allows it to generate more income later.
The challenge is finding a way to make those improvements without creating a large upfront financial burden for the landlord.
How our property improvement facility works
When we take on a larger HMO that requires investment, we may be able to fund agreed improvement works ourselves.
This can include things such as:
Refurbishment and decorating
Deep cleaning and property preparation
Repairs and maintenance
Agreed compliance works
Replacement furniture and fixtures
General property improvements
Works needed to bring the property up to a suitable rental standard
The exact works and costs are agreed with the landlord in advance.
Rather than requiring the landlord to pay the entire agreed cost upfront, we can arrange for the cost to be repaid over an agreed period while the property continues to generate rental income.
This can make a significant difference when a property needs a substantial amount of work before it is ready to perform at its full potential.
Getting the property ready to perform
Our objective isn’t simply to make a property look better.
The aim is to create an HMO that is easier to let, more attractive to quality tenants and capable of producing stronger long-term returns.
A well-presented property can help to:
Reduce void periods
Attract better-quality tenants
Improve tenant satisfaction
Support stronger rental values
Increase occupancy
Protect the landlord’s investment
Improve the overall performance of the HMO
For us as the managing agent, there is also a clear benefit.
The better the property performs, the better it works for everyone.
We want to take on HMOs that we can actively improve and manage, rather than simply accepting a property in its current condition and hoping the market will do the rest.
A practical solution for landlords
Every HMO is different, so this isn’t a one-size-fits-all arrangement.
We assess the property, identify what needs to be done and discuss the improvements with the landlord before agreeing the works and repayment arrangement.
For landlords with a property that has plenty of potential but needs investment to unlock it, this can remove one of the biggest barriers to getting started.
Instead of waiting until you have a large amount of cash available to carry out the work, we can look at whether there is a practical way to get the property improved and generating income sooner.
Is your HMO being held back by its condition?
If you own an HMO that needs work, but the upfront cost is stopping you from moving forward, it’s worth having a conversation with us.
We can assess the property, look at what improvements are required and discuss whether our Property Improvement Facility could work for you.
The goal is simple: get the property into the right condition, get it occupied and help it perform to its full potential.
If your HMO needs investment but you don’t want to face a large upfront bill, get in touch with Infinitus Delta to discuss your property and what we may be able to do.
