Following on from our previous post, here is part two of our article on How to Maximise the value of your rental rooms…
6. Room Styling
There will be times when you have empty rooms. It might be a new HMO you need to fill, or a tenant moving out that you haven’t managed to replace yet. Be prepared for these times and have a Styling Kit ready. Dressed rooms rent more quickly and for a higher price than undressed rooms, as they inspire people’s imaginations and help them to picture themselves living there. My kit is quite extensive, but the basics would include fluffy white pillows and a chunky white duvet, some cushions, fake plants, magazines/books, and perhaps a couple of ornaments, bathroom products, and a towel.
7. Contrary to popular belief, create a shared living area.
All of the HMO courses will teach you that the higher the number of bedrooms your HMO has, the higher the income you will receive. While technically this is true, times are changing. With less houseshares having shared living areas now, a couch and somewhere to chill with their housemates has become a luxury tenants will pay more for. Typically £50-£75 more per room each month (London rates).
Not only will tenants pay more for a house with a lounge area, they are also more likely to be comfortable and stay longer (which equates to less wear and tear, and less voids for you).
Depending on the size of your HMO and how much space you have, you could create a separate living room with couches and a TV. If you have a small or central/windowless room to spare, consider turning it into a bijoux cinema room filled with a corner sofa, cushions and large screen on the wall. If all you have to spare is a kitchen space, plan the layout carefully – perhaps by including a breakfast bench, you will have space to add a couch too.
As a general rule, the more tenants I am able to accommodate in a HMO, the more separate shared spaces I try to include in the overall design.
It’s also worth considering the standards being set by the Mega-Mo’s and the multitude of shared spaces they offer. To keep your HMO rooms on every potential tenants’ short list, provide an area for lounging.
8. Install ensuites.
In London particularly, people want their intimate moments kept private, so the demand for ensuite rooms outstrips rooms with shared bathrooms any day of the week. Be clever when designing the space though. High quality tenants still want a double bed to sleep in, decent storage and a desk area, so don’t install an ensuite at the expense of these other essentials.
A word of warning though. The VOA (responsible for setting council tax bands for properties) have been known to re-band HMO rooms individually (rather than leaving the HMO as a single-banded house), and all-ensuite HMO’s seem to be particularly vulnerable.
9. Install more bathrooms
If space (or the threat of individually banded rooms) dampens your motivation to create an all ensuite house, then look at increasing the number of shared bathrooms. Most tenants would find it preferable to endure just one other person’s bathroom hygiene habits, so 2 tenants to 1 bathroom would be a good number to aim for. Needless to say, it will increase the desirability of your rooms.
Another warning here. With more bathrooms, there is a greater risk of encountering more leaks, so use a competent builder who also understands (and can communicate to you) the long-term maintenance requirements of the products he installs. Also remember to include easy access to the space beneath showers, baths and behind toilets.
10. Update the kitchen.
If the kitchen is older than about 15 or 20 years max, then it’s definitely time for an upgrade. Modernising the kitchen really impresses potential tenants and it gives you the opportunity to improve the layout and available storage too.
Choose cabinets and worktops that are durable over cheaper alternatives. Choose tiles / flooring / cabinet fronts in timeless rather than fashionable designs (you can always add a bit of ‘wow factor’ through some decoration later). Be sure to account for AT LEAST one 60x40cm cupboard for dry food storage per person, but from experience, tenants generally want more food storage than this. If you don’t have an airing cupboard or separate utility room, make sure you include a tall cupboard in the kitchen to store things like the hoover, mop, broom, ironing board etc. Ensure there is enough space for plates & bowls, glasses & mugs, pots & pans, utensils & cutlery, and for cleaning products (under the kitchen sink). And remember HMO licensing requires a minimum of 0.5m of worktop per person.