HMO Case Study
Relocation PA took on full management of 26 Stanhope Street, a professional HMO in Hereford about six months ago. The landlord approached us via our website having been searching for someone to take on the management of his HMO for a few months. Luckily the website had gone live just in time! This particular property is a 5-bedroom HMO in Whitecross which was being managed by the landlord for the last few years. Having moved away from Hereford to Hay on Wye, the landlord was getting frustrated coming in for viewings and dealing with maintenance problems and so sought out an agent to take over those aspects of the management for him, now wanting to take a step back from the property having moved away from Hereford, yet still benefit from owning an HMO.
Key tasks we undertook for the landlord
When we took the management, there were a number of key tasks we undertook for the landlord. Firstly, we had to bring the property up to Relocation PA standards which meant dealing with a number of outstanding maintenance tasks such as sorting showers out and broken locks out. We did this to ensure the current tenants remained happy as they had failed to be sorted when asked. There was a room empty, so we dressed it and advertised it for the landlord, filling it quickly to ensure no more lost rent for the landlord. We conducted the viewings and check in for the landlord thus he wasn’t involved at all. Due to our NO Let NO Fee guarantee, we only started charging the landlord for full management when we had filled the room.
Right from the start, we could see the landlord was under-pricing his rooms. We therefore ensured that every time there was a tenant changeover for a room, we would increase the rent for that room to what we felt was suitable.
One of our more complex tasks was ensuring the tenant mix was sorted at soon as possible. When we took over the management of 26 Stanhope Street, the tenant mix was a complete miss mash with doctors, students, and a chap on benefits in there. One of the fundamentals of running an HMO is getting that mix of tenants right. Part of this meant serving notice and evicting a tenant who wasn’t paying his rent full each month and dealing with the whole eviction process for the landlord. Every time a room came available to rent we would advertise it as the right target market and rent it to the type of tenant we wanted in the property, which is this case was professional workers on slightly lower budgets.
We put in place an ongoing maintenance program such as sorting the garden out and painting rooms which needed painting when tenants swapped over. We are currently advising the landlord how to improve the kitchen in this property as that is one of the key factors which previously had put tenants off. We established this from feedback from previous tenant viewings.
Benefits for the Landlord
Relocation PA fully manages this HMO meaning we undertake all aspects of managing an HMO so not just viewings and letting but ongoing tasks such as the weekly fire alarm tests, monthly inspections and dealing with all maintenance reporting.
Over the last six months of managing the property for the landlord, Relocation PA has managed to increase the rooms rents by an average of £40 PER ROOM per month which has meant that just by increasing the room rents, we have covered our management fee for the landlord, therefore, the landlord isn’t out of pocket, yet doesn’t have to worry about his HMO at all and can relax and watch the money flowing in! This is just one of the many benefits of using a management agent and meaning we have one happy landlord!
To find out more about how Relocation PA can help with the management of your HMO or ring us on 01432 700 025 where we would be delighted to have a chat with you and see how we can help.