SELL YOUR HMO TODAY.

What’s the difference between selling a HMO and selling my family home?

 

There’s some major differences in selling a HMO compared to selling an ordinary property, make sure your agent has the experience:

  • HMOs can be difficult to value properly.

  • You are marketing to a smaller pool of buyers. This marketing has to be effective.

  • It can be difficult to actually find buyers. Most estate agents do not have waiting buyers for HMOs. Make sure your agent has a good buyers list for investment properties.

  • A number of compliance issues make actually selling an HMO more complicated.

How do you Value an HMO?

 

When we’re selling HMOs, we’re not looking solely at the bricks and mortar value of the property. Whether it is a small (6 person and below) or large HMO, we still have to take into account the following.

  • Gross rental income

  • Quality of HMO (e.g. standard of refurbishment, extra services etc)

  • Area Demand for HMO rooms

  • Square footage

  • Track record of compliance

 

It is important that we get an accurate valuation from the start in order to prevent valuation issues with mortgage lenders later on. We will need to see all available information about a property in order to value correctly. We will ask for marketing photos, videos, financial information, utility bill costs, licensing, and certification before carrying out an on site visit so that we can confidently suggest an attainable price.

 

Hints and Tips to Sell your HMO Quickly.

 

Here’s some great tips to ensure you are ready to put your HMO on the market at the best possible price.

Stage your empty rooms.

 

Make sure your rooms look the business! Staging empty rooms with quality soft furnishings and adding a hint of interior design will show off your property whilst giving investors the confidence that the HMO can keep producing results after the sale.

 

It’s your chance to put the vision in their head rather than leaving viewers feeling underwhelmed. Use laptops, books and ornaments to sell the lifestyle of your tenants.

Get up to date with maintenance. It’s not just the rooms that have to look good. Do the communal areas need a lick of paint? Is your guttering leaking? Fix those little problems now. Think show home standard. The small cosmetic fixes do not have to cost an arm and a leg.

Keep your HMO documents in order.

Check that both your certificates and licensing have not expired. Prospective buyers and their solicitors will ask to see the relevant documentation and if it is not available it will inevitably delay the sale.

HMO documents you need:

  • HMO Licence (if applicable)

  • Planning permission (if applicable)

  • Copy of all AST’s associated with the current tenancies.

  • Gas Safety Certificate

  • EICR

  • A valid EPC (Energy Performance Certificate)

  • Fire Risk Assessment

  • Installation/test certificates and records for fire alarm and emergency lighting systems (or valid annual inspection certificate)

  • Property maintenance records.

  • Building regulations certificates (if applicable)

  • The management contract, if you have an HMO manager rather than managing the property yourself.

  • Floor plans. These may be needed by your buyer as part of an HMO licence application.

  • Monthly statements.

So now you've done all the prep.... let's get selling!

1668 Bristol Rd South, Birmingham, B45 9TY

0121 285 5105 - lettings@genie-homes.co.uk

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