5 biggest HMO mistakes in property investment | Vlog
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- Опубликовано: 15 июл 2024
- What are the top 5 biggest HMO mistakes you must avoid as a property investor or landlord?
In my previous vlogs you have seen real life examples of some of my high-end Birmingham HMOs. With over a decade of HMO (House in Multiple Occupation) experience I have made many mistakes and learnt the hard way. In this vlog I share the 5 biggest mistakes I see new HMO investors making.
What do you see as the biggest mistake being made in investing in HMOs? Let me know in the comments section below.
#HMOmistakes #HMOinvestment #propertyinvestmentuk
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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.
The 'primary' location for students is not always just closest to their university campus. For example in Nottingham it's lenton which is half way between uni campus and town. You can live closer to campus, but there's not much going on
Excellent video, little details like the Euro and digilocks on the doors everything well maintained and fresh. I'd add importance of easy to maintain gardens and ample kitchen units for sharers. Clear to see you've made a success of this mate.
Thank you Ian
Very informative video, nice to learn more on the different types of customers/tenants.
Thank you for your support Hamzah.
Great video. Thanks Saj
Glad you liked it Sam. If you are enjoying these videos, then please do share them with your friends.
Nice one Saj!
Thank you very much - appreciate
You are welcome!
Great video really enjoyed it
Glad you enjoyed it. Let me know what type of videos you would like to see on this channel.
Super Saj 👍🏼
great video. in Scotland, presence of midges! is important!
I'm not sure what you mean.
Thanks
Fantastic video thank you so much for such an informative video 💯
Glad you found it useful!
Saj this was a great video, watched it all while doing my gym session 💪
Thank you, 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.
Great video!
Thanks Ahmed
Very useful and well explained!
Glad it was helpful!
Great info Saj, a video on planning and permissions for the various different scenarios would be awesome!
Thanks Shahed. I'll look into doing a video on this.
Thanks for sharing
Thanks for watching!
Great video
Thank you!
Just came across your channel last night and I'm loving your videos! I like that they are short and sweet. It's hard to find time to watch a 30 min plus video so yours are great. One thing I'd like to ask. Where do you purchase your furniture from for your low and high end properties?
Hi Sasha, thank you for the support and it would be from local independent suppliers.
number 6 best one !!!!!!!!))))))))))))
Thank you.
Brilliant
Thank you Hassan
Absolutely quality video, I would be so delighted if one day I could invite you out for a lunch and ask questions.
Importance of internet speed is underrated, internet is communication electricity.
Completely agree.
Yes, please do a video about planning and licensing separately. Thank you, your.mentee Adrian
Hi Saj. Many thanks for video
i wanted to know that to pass building regs and / or to satisfy a mortgage inspection, does a FENSA certificate need to be provided?
I ask as many suppliers will not provide it unless they fit it, and many builders who are competent to fit the windows arent able to certify.
What do you advise re this for HMOs / flat conversions etc
For those of us who don't have or want to start a management company Saj, do you have any advice on hints and tips on how best to over come management issues. I am guessing there aren't that many management companies out there who are proactive in ensuring an HMO remains fully let and correctly manage an HMO
Really enjoyed this. How do you Carter for different energy needs for each Tennant. Does each room have its own heating and utility bills?
We pay all the bills and allocate an allowance to the tenants with a fair usage clause.
For Accurate Appraisal /Valuation of All New Future Rental Proposals you seek in Target Locations You Seek, is there any Appraisal Software you use please to quickly appraise new proposals to enable you to promptly submit offers direct to property owner/landlords?
form of tenancy
valuation considerations
valuation approach
assessment of gross income
assessment of operating expenditure
net income capitalisation
benchmarking
aggregate break-up value and
cash flow analysis.
Thanks 🙏 Saj Husein , I’ve just subscribed to your channel 👌👍🏼👍🏼🙏🙏
Much appreciated Shun
Hi Saj, thank you for the video very helpful. Quick question, when you mention the £85 running cost per head, would that be per month? therefore, 6 person HMO = appox £500 running cost pcm?
sorry if that was mentioned in the video, thank you
Yes, correct. This video explains in more detail ruclips.net/video/eMH0a6kLtcU/видео.html
Hi Saj, really glad I came across your channel. I have been searching for this kind of insight for a while as I look to become a letting agent.
I had a question for you; with your HMO's that have shared kitchens and an en-suite have you been required to pay council tax for each room on an individual bandingby the VOA? does sui genesis planning exclude you from banding each room individually?
Salaam Bilal, no we have not. A certain criteria needs to be met before the property is rebanded by the VOA.
Hi
HMO s are great business option, but how easy are they to sell and move on.
With all your experience in property development which type of development or investment would you recommend to landlords or investors as the best option to get maximised financial potential from little financial input.
If you are getting started in property, then these 2 videos will help you.
ruclips.net/video/lD7tw0dG0-c/видео.html
ruclips.net/video/le9aTQsbOow/видео.html
Hi Saj.. thanks,
Do you ask your tenants to pay deposit?
How do you manage the bedding?
Thank you again..
Yes, we take deposits equivalent to 5 weeks rent (maximum permitted).
We keep the bedding in storage.
How many bedroom house need hmo or don't need which type?
Hello Saj, if I start a property rental business dealing with HMOs and buy to let, would this be classified as trading or investment? How can you turn it into a trade if it is an investment type business?
If you are just managing for a fee then it is not considered an investment business.
@@TheSajHussain thank you!
Yes I think a video for planning and legislation would be very effective.
Also can the grandfather rights be transferred if you purchase a property in a article 4 area which has been/in use as a hmo
Thank you Mohammed. I'm organising more videos.
Yes, the planning uses belong to the property. So, change of ownership does not affect the planning use. You may still require a License which is issued to the individual and is not transferable.
@@TheSajHussain I'm assuming the license is granted based on payment and property requirements for a safe hmo and not dependent on the council's restrictions to HMOs.
@@mohammedsuleman8786 License is assessed on you the applicant and the property. Hence, why it is not transferable. In an Article 4 area I would apply for planning first then the License.
Is this in balsall heath, good knowledge of Birmingham, 😊
Hi Saj. Very useful videos. I've just invested in a 22 bed former care home with plans to covert to student accommodation. It's my first HMO as have several single let properties. Would be great to touch base and get some guidance. Appreciate you will be super busy so no problem if not possible. Regards Kash.
How did it go? Did you get planning permission?
@@n.s.5278 yes thank you, planning got approved last month so on to next stage of building warrant and HMO licence.
How to obtain planning permision in article 4 direction?
You will need to make an application for planning permission. You will need to be mindful of things like car parking, bikes storage, refuge management etc.
Hi Saj, how do you attract more/new investors to invest in HMOs?
Hi Joshua, one thing to do is share with people info about HMO deals you have already done. A bit like what I do on RUclips here. I also have a video where I talk about finding investors in more detail.
ruclips.net/video/U5O0hdVJhXQ/видео.html
Hi Saj , do you do hmo trainings , i aould like to start managing hmos in Birmingham
Very soon Mantas
What mistakes people make and could I make as well to avoid
What is the planning?and why do I need a planning because I’m not building anything in the house am I
Planning could be required for change of use without the need to build anything.
Second question, if for example I run my property business and found myself a property that could be a potential HMO, how can I know if planning permission and licences will be successfully granted before making the purchase?
These 2 videos will help you.
ruclips.net/video/yrKQv6zjDvY/видео.html
ruclips.net/video/n_jsYaI3Kkk/видео.html
@@TheSajHussain thank you so much dear 🙂
Can a new purchaser take on HMO License from the previous ownership if it expires next year ? Can it be transferred as it’s still in existence?
No, the license is issued to the owner.
Your analysis of blue collar and white collar is very outdated. I work in design and build (Construction) in London and make well over £60k a year but would be classified as blue collar. I'm not sure its a clear cut as job type and industry. Many friends of mine work white collar jobs in offices and earn around 30-40k. Most of my blue collar colleagues, plumbers, electricians etc on £2k upwards per week. Is an office worker on £25k a year considered white collar? What about a site manager on £80k a year?
In America referring to somebody as a blue-collar worker, implies that they do manual labour.
Is it not discrimination now if you limit which tenants you want ?
Yes, we can appeal to a certain tenant demographic but not discriminate.
Do you run any HMO courses?
I will be in the coming months. To stay informed visit www.sajhussain.com/2021-courses-get-notified-sign-up/
Council ask proof that is not demand for single families.
Ask this question on my Monday Live shows and I will give you more details Edgaras.
@@TheSajHussain Thank you. Very appreciate your helpful advise.
@@AnimalLoverAdeleSLAY You are most welcome
Bad WiFi, damp, heating not working in the winter. HMO landlords ugh 🤦🏾♀️
I guess like all industries you have good and bad. In property you get some great landlord and great tenants. You also get some awful landlords and awful tenants.
@@TheSajHussain I do agree that you should
Know who you’re trying to cater to. Because most professionals wouldn’t want to live with uni students and vice-versa
I completely agree
Great info. I have a little over 100k and would like to invest. Let me know if you can help
Thank you for your message Adil. There are 2 ways that I can help. Either, by showing you what I do so that you can do it for yourself or you can invest with me for a great return on investment and let me do all the hard work.
To learn more about me helping you do this for yourself and the mentoring programme click www.sajhussain.com/let-me-mentor-you/
To learn more about investing with me click www.sajhussain.com/invest-with-saj/
Adil let me know which ones suits you best.
have you thought about investing in a HMO in Chester? I work with landlords and investors to help get a very good return on their investments
saj can you do the internet noise again
🤣🤣🤣
@@TheSajHussain Saj. On the serious side your films are incredible informative and educational , keep up the good work
parasite at his best, also its 4 people not 6