Have you noticed the demand for your HMO properties has increased? And are rents for rooms going up on average in your area? Overall, it seems good quality housing stock continues to be in really high demand!
In this blog post, we’ll cover exactly what’s happening in the industry right now and how HMO landlords can use the strong state of the market to fill their rooms even quicker and improve profits.
An Update on the HMO Market
Data from SpareRoom has revealed that rents are up across every single region in the UK! Northern Ireland leads the way with a 17% year-on-year increase in average rents.
The average room rents have even hit an all-time high in London with prices up by 15%. And both the North East and Wales have seen a 13% rise. Additionally, all 50 of the largest towns and cities have recorded a year-on-year increase in room rents, and 40 of them saw their highest room rents on record in Q2 2022.
Demand vs supply is up in all of the 50 biggest towns and cities except one. In recent months, there has been a “perfect storm” of high demand, low supply, and surging energy costs, which for some are being passed on through rent increases.
Matt Hutchinson, SpareRoom director, comments: “We’ve had our busiest June on record in terms of people using SpareRoom to find somewhere to live. At the same time, the supply of rental properties has plummeted, meaning rents are on the up almost everywhere.”
As the cost of living continues to bite, more renters will likely turn to HMOs as co-living options are often cheaper than other types of accommodation in the private rented sector. This could cause demand to increase further across the HMO market in the coming months.
3 Tips for Filling HMO Rooms Quickly
With the HMO market moving so fast, what can we do to make sure we’re taking advantage of this momentum to fill our rooms as quickly as possible? Here are my top tips to help you fill your HMO rooms even more quickly, which will allow you to minimise your void periods and boost your profits!
1. Get the Adverts Right
First and foremost, you need to get the adverts right for your HMO rooms from the get-go. This includes having high-quality photos, in addition to engaging descriptions, that are effective in getting prospective tenants’ attention. Doing this all bang on will allow you to fill your rooms quicker.
Not getting certain areas right for your adverts will mean your rooms won’t stay at the top of the platform listings you advertise your rooms on. You could try testing out different things to find out what works best for your target market.
2. Reply to Enquiries Quickly
To get the best chance of converting enquiries into viewings and then viewings into tenancies, you need to aim to answer all enquiries within 15 minutes, be engaging with these prospective tenants that are reaching out, and offer viewings within 48 hours.
I know this is really tough to do as this includes enquiries that come through in the evenings and on weekends. Do what you can to reply as quickly as possible. If you can’t respond immediately, keep in mind that other landlords will beat you to it.
3. Have Systems and Processes
Implementing the right structure can ensure you are being as efficient and successful as possible with your strategy for filling rooms. Put a system in place for sending out reminders to viewers, notifications of access to existing tenants, and follow-up messages after viewings.
Additionally, have a specific process for how enquiries should be managed and the way viewings should be carried out. This will help ensure you are organised and are improving your chances of securing a tenancy.
It’s important you stay on top of all this so that you can fill rooms quicker, reduce your voids and make your HMO business more profitable! This will help you take advantage of the momentum building in the HMO market.
For more advice and lessons on how to secure tenants quickly and manage your HMO portfolio, sign up for The HMO Roadmap today!
About the Author:
Andy Graham is the founder and the lead trainer at The HMO Roadmap! He is also the co-founder of The HMO Mastermind and Smart Property, a specialist HMO property investment and management company. He writes as a regular columnist in different magazines about a variety of HMO topics and is the host of The HMO Podcast! Follow Andy on Instagram!