A House of Multiple Occupancy property (HMO) is one of the best performing let properties, both due to their high rental yields and huge demand.
The multiple occupancy/student market in Aberdeen continues to grow, with minimal void time, making operating a HMO flat a very attractive investment.
The student market is responsible for the vast majority of occupants in the HMO market in Aberdeen as the student population is over 28,000. That population is growing due to the continued expansion of Aberdeen University, Robert Gordon University and North East Scotland College.
Stonehouse Lettings are HMO specialists. All Property Managers are fully trained and able to provide expert knowledge and professional guidance on first time HMO applications and ongoing renewals.
Investing in an HMO
We specialise in upgrading and converting properties to meet HMO standards. With our vast experience there are 6 key principles to consider when looking to invest in HMO:
- Location is key – target student areas where demand is high
- Improvement – maintain property or seek a conversion opportunity
- Yield – maximise return on investment
- Source the right Tenants – key to successful property
- Ensure Application deadlines are met
- Property Management – instruct a professional company like Stonehouse Lettings to ensure all the above criteria are met.
HMO Application Process
A licence must be applied for via the Local Authority licensing department. In Aberdeen a license (whether new or a renewal) is valid for 3 years.
Licence costs depend on the Local Authority and the size of the property. In Aberdeen most HMO properties are 3-5 bed properties with the Local Authority cost of a new application being £495.00 and all subsequent renewals £400.00.
Obtaining a licence can be complicated, this is where it really helps to have an agent like Stonehouse Lettings organise these matters for you.