This article is aimed at a very specific area of Property Rental – it sits somewhere between a standard single let property to a family and a fully blown HMO ( House in Multiple Occupation ). So….. what is my definition of “room rental” or “multi let property?” It’s very simply a normal, 3-bedroom house that has an extra bedroom converted from a living room, dining room or similar. It might be aimed at a specific niche in the market – ie a student house or nurses’ house. But it’s not a B &B or, importantly it’s NOT a fully blown, Licensed House in Multiple Occupation. You might be wondering why the difference?
Well, in most cases a ‘room rental’ house slips under any regulation that might be in place for HMOs – the regulation is complex and it can be quite expensive to convert your property to a full HMO – so we are going to keep it simple for the moment! If you want to know more about HMOs, I’d suggest you have a chat with your housing officer in your local council to start with. But generally an HMO is legally defined as “A three storey property being occupied by 5 or more persons forming two or more households” and this falls into the Mandatory Licensing regime. You will attract attention from The Council, Planning, Fire dept, and all sorts of departments with lots of regulations. Now, I dont know about you, but I like to keep it simple and steer clear of this sort of thing!
So – we can do two storeys and 5 people, which is where this niche comes into its own – just a word of warning. Some UK Councils have Mandatory Licensing for ALL room rental houses in their area – but this is usually in areas where there are a lot of these types of properties and the council is trying to control their spread. Just check with the Council.
Back to room rentals, the idea for this article and those that follow is to show you how to…
• buy or lease a 3-bed house in the right area of town • convert a living room to a bedroom – thus giving you 4 beds • make various inexpensive changes to the property & furnish it • market the property and make?500 – ?750 a month profit.
If you already have a 3 bedroom house in your portfolio and are looking for extra Cashflow – simply convert a downstairs room into a bedroom, giving 4 bedrooms in total and you are ready to go!
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