How much it costs to set up and run an HMO
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- čas přidán 10. 11. 2020
- I often get asked how much it costs to set up and run an HMO property.
If you are making an HMO property investment, you want to budget for both setting it up, also for running the HMO once the tenants have moved it.
In this video, we’ll talk about the actual set up cost, meaning those aspects that will be different in a House in Multiple Occupancy compared to a family home. One of these aspects is fire safety, for which you will need fire doors and a fire emergency system.
Then you look at the utilities and management of the property once you have tenants living there.
Let me know in comments below if you want me to make a separate video on renovating an HMO, as in this video we’re not discussing this aspect.
Check out the separate video that I made in more detail about HMO Licensing:
• HMO Licensing - what, ...
#HMOpropertyinvestment #HMOcosts #setupanHMO
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Thank you for watching my name is Saj Hussain AKA The Property Joint Venture Expert and Your Partner for Wealth Creation Through Property.
Love your breakdiwn Saj! 😊
Great video Saj - thank you.
extraordinary video sir! keep up the great work
Thank you. Glad you enjoyed it.
Learned a lot!
This was a motivated effort to educate!
Saj, looking forward to meeting you someday.
In’shaAllah
InshaAllah, thank you Musaddiq.
very informative.
Thanks Saj
Very informative Saj, well done. A reno video would be great.
Coming soon!
Would like to now about the conversion and renovation costs and brilliant video and have just come cross your channel and hope you are staying safe and well
Thank you! Coming soon.
very informative thank you
Thank you Nas.
Thank you for this
Great video
Hi Saj, hope you are well Iv been loving your videos recently and I would really benefit from a video on renovations. Thank you
Will do!
clear and useful
Glad it was helpful!
Thanks Saj, very helpful video. Can you also do a video on renovating for an HMO?
Hi Saj, really love your work and videos. Very informative and helpful. I was after a conversation figure from a 3-4 bedroom house to a 5-6 bedroom HMO. From start to finish, including all the surveys, drawing, planning, building and furnishing sheet.
I will happily speak to you on a one to one.
Hi Prashant, glad to hear you starting your property journey off. It would be best to contact me on Facebook @TheSajHussain
Thanks! HMO renovation vid would be great plz
Hi Saj, as always great content.
HMO renovations video would be very beneficial.
Coming soon!
@@TheSajHussain what if a house becomes vacant ?
Don't bother
Hi Saj, thanks for the video. Very helpful. Do you have an idea of what % increase you have applied to gas and electric since the price increases this year?
Hi Saj love the comments - can you let me know more about how you can control the heating on HMOs please as you are bang on the button with the tenants opening windows rather than turning down the heating 😮
Salaams Saj, great Video by the way, really helped me. I'm in the process of trying to set-up a HMO. Its a 6 Bedroom Unit (all en-suite), with 3 Shared rooms (kitchen, lounge, laundry room). A couple of the bedrooms are slightly larger with double and single. What would you recommend for heating or could you let me know a good company that could provide a heating solution.
Hi, a video surrounding HMO renovations would be really useful!
Coming soon! If you are enjoying these videos, then please do share them with your friends.
Hi Sam, please do a video on renovating to rent to let. Great content by the way!!
I mean Saj
Thank you for watching. I'll add your suggestion to my list.
brother do some content on renovation please!
Nice vid Sag. Please can you provide updated figures for 2024 in the info section above?
Interesting. Looking to get my first property though proving difficult due to lenders requirements. Looking at HMOs though buying a property already converted as there seems to be restrictions in the area limiting more hmos. Only need to see if theres a lender which will accept me for ftb hmo. I would assume too these prices are lower now compared to when you made this video
Brilliant mate, I would love to know if there's is a link to know which areas in the UK are article 4 or not by entering the post code.
Thanks
Hi Saj,
Great video. What thermostat do you use?
Also I was considering running my first HMO myself and wanted to know how often do you need to test a grade A fire alarm system. Is it once a week? Thanks for your help. Regards John.
Great video Saj, where is the best getting the bedroom furniture from? Thanks a lot.
Where are you based in the Country Kirstof? You can message me on Insta or FB.
I’d love to know what remote heating system
Monitoring you use? Many thanks
Excellent video thanks Saj. Can you please comment on budget for kitchen and bathrooms? Thank you
It varies from project to project. About £3K to £5K per bathroom and £5K to £8K per kitchen.
@@TheSajHussain Thanks Saj.Does that include fitting / plumbing and electrical works?
Hi saj, very helpful video. Thank you!
Where do you buy your blinds usually?
I use local independent suppliers.
Hi Saj ,
I enjoy your videos. I am a portfolio landlord with SPV Ltd company if I want to go into Let to Let kind HMO business should I open a new company ? NIC for SPV company is only for managing and letting own properties , I could add another NIC to include managing and letting other properties but would this cause a problem when applying for a mortgage on BTL properties ? Many Thanks
what are the remote heating options my brother? in London what would you say a 4 bed Victorian house conversion to 6 bed HMO with en suites, new kitchen, electrics, plumbing, fire doors with furnishing would cost approximately? thanks.
Very informative video thank you. Recently subscribed so looking forward to more content. Can I ask who supplies your bedroom and living room furniture? I would be grateful for a website link.
We use various local independent suppliers for all furniture. Where are you based in the country?
@@TheSajHussain based in Leicester but investing in various other cities also
Hello Saj, hope you are well. Could you please make a video on how tv licensing works when renting out a HMO and short-term (Airbnb) properties.
You pay the TV licence fee as the SA operator.
@@TheSajHussain Thank you
Hi Saj,
Like always great content, in regards to fire doors does the installer have to be certified? or can a building control officer sign them off?
Hi Omar, no certification is required just a competent carpenter.
Thank you for the reply
What system do you use for the heating so it’s mobile controlled please
Hi Saj, a very informative video.
Could you please explain how you deal with seaparate TV licenses? I take each room then needs its own license, who pays for all of them? you or tenant?
Hi Vladas, we only pay for the one in the communal area.
I believe that you only need one tv license per household for multiple tvs.
I have been trying to work out which property, or HMO, single house ect give the most returned, one of the biggest factory is mortgage repayments, ie interest rate are a lot higher on HMO and self contained flat ie 4.3% is the cheapest quote I got then a normal buy to let which is 1.5%, with the like of HMO bring you net profit really down,
does anyone no of which area is the best to buy a normal standard house that give a 10% yeild or does that not exist
There are lots of pockets of areas where you can generate 10% yield. However, they are often in the least desirable areas. So it all depends on your appetite for risk and how much hassle you can handle. Personally, I prefer HMOs with professional tenants to balance low hassle with good yields.
Hi Saj
Do you have your own company that manages HMO/service accomodation properties etc?
Enjoying your content
Yes we do
Could you recommend a company that does HMO kittings? Also, would you advise integrated appliances or stand alone? Smoke alarms, do they need to be fitted in each room or just the communal areas?
Hi Kennie,
We do HMO lettings in and around Birmingham and can help you in these areas.
Integrated appliances - this depends on the style/layout of the kitchen. No real preference.
Smoke alarms - this depends on the type of HMO it is. LACoRS is the best guide for this.
If you are enjoying these videos, then please do share them with your friends.
@@TheSajHussain - Property is in the South West specifically Swindon. Would you be able to cover this area for HMO kiting? And yes, will deffo share !
Kittings?
Where do you get your kitchen ands bathrooms from if you don’t mind me asking
Most kitchens from Magnet and bathrooms from various suppliers.
Thanks for sharing your knowledge. What is the average renovation cost for a HMO. Like this comment if you like to know.
For us it's around £15K per bedroom. So 6 bed = £90K. Plus other costs such as furniture etc. If you are enjoying these videos, then please do share them with your friends.
Hi Saj, Thank you for sharing great ontrnt! what is the best system for monitoring the heating and what are the costs?
Heating costs are rising fast. We use Inspire thermostats in many of our properties.
Not being funny but even at £100 for a cheap fire door. You've got 3 hinges and a door closer. By time you buy the strips and include labour to hang it. Be hard to get anyone in my area to do them for total of £250 each. Especially if you have to get them checked/tested?
Also you often have to paint the door. Probably plane it down to size. It's not a 5 mins job. Those strips don't always go in easy either and we once spend a day hacking away with a stanley knife to get them in. How much did that day cost the customer? 2 men, 1 day.
8 doors is £2000 according to this guy. And you'll do well to own them if you put them in a rent to rent property you take over. So that's your first years profits gone already on just the doors?
And if you did rent a place and turn it into a HMO. And it was making money. The landlord would simply take it back at end of term or sooner and rent rooms out himself. You'll have created a business for someone else?
If you're buying a place to become a HMO as a get rich scheme. You'll do well the buy the house, let alone refurbish and pay the mortgage till you get tenants
So forget that idea too
Hi saj where’s the link to the renovation video
Thanks
Here is the playlist for HMO's czcams.com/play/PL0TKRD-jX9t_Ww9Ym3ae9EfO2976zhAsp.html
How do change your house into hmo
Can I ask where you bu6 the grade A fire system? Thx
Most electrical wholesalers can supply this.
how do i get into your training and what is the cost. Do you mentor after?
Yes I do. You can message me on Facebook and Instagram @TheSajHussain or you can use this link here: www.sajhussain.com/contact-us/
Hi Saj,
What are the heating systems you use ?
Hi Harpreet, we mostly use Inspire Home Automation.
@@TheSajHussain Great vid as always, Thank you, Saj. What do you think of the popular Time-O-Stat for heating control?
Thanks.
Hi saj i dont understand the cost per room is 85£ per room ...can you explain...great vid
This is operating costs per tenant per month. To pay towards gas, electric, water, council tax, internet etc.
@@TheSajHussain ahh per month not per day .that makes more sense thanks for the explanation great vid bruv
Does this depend on how many rooms you have. I think you said 6 rooms but what if u have 5 room. Im trying to work out if this will go up now because of gas and electric bills
plzzzz show us how to renovate
More videos to come soon! If you haven’t already, then do subscribe to the channel and enable the notification bell so you don’t miss any of the videos as they are released.
After being fully charged up by your excellent and informative content I have last week decided to go and establish a letting and management business I have started with 3 properties which i have let and hope to learn more from yourself and need to ask is there a contact number that i could have for some advice
Well done Irfan. You can message me on Facebook and Instagram @TheSajHussain or you can use this link here: www.sajhussain.com/contact-us/
@@TheSajHussain Hi Saj - I would be ready to do a Joint Property Apartment Renovation with you & Aideas because I know your awesome standards in all you do.
Can it be possible that you will consider my request?
I hope we can keep in touch re anything property related.
Kind Regards
Palmer
Only people making the money are ones selling the property courses?
I’m sure you can go to university and find a business teacher who hasn’t built a business to teach you how to build one.
@@TheSajHussain What they teach at university is real.
All you are doing is selling an unproven concept
You have a theory of how to make money and you are selling that. There is no proof of this concept.
Trouble is. In the real world you need more than a theory
The other other week you were hanging out with an ex childrens entertainer who's doing pretty much same as you?
Most people you sell courses to haven't a penny to their name. Let alone enough to set up a rent to rent business after you've finished with them.
In my area a 4 bed house in the worst part of town means cheap rent at £1300 or £500 a room HMO. Even using the lounge. And finding 5 people who live together. At even £1000 a room for fire prevention and cheap furniture. Paying bills and a cleaner. You'll be owed so much it will take forever to even get back to a clean slate. Especially taking into account the cost of learning how to do this.
Could cost you £100 a month in adverts in the local paper for rooms or failing that you'll get people playing email games on houseshare sites. People with no deposit or hope in life
People who've done a runner elsewhere
Please stop conning people
@@Nonegiven14582’unproven concept’ what are you talking about? Property business is a huge area that’s been around for decades with most wealth being created and generated in this space. And Saj himself has a property business generating millions and has been in the space for around 15 years… So really not sure you know what you’re taking about
Over 50% of university graduates do not get a job in their field, so £30-£50k+ (depending on the interest paid but generally over 50k) invested to then not even use the degree to get a job, lol sounds great
Goodnighg
Excellent information Saj - Fire Safety is No 1 Priority. Enjoying your communication- so well presented - crystal clear.
Thank you