Growing Demand For Higher-End HMOs: Tips For Renovating And Updating Your HMO Portfolio

In the HMO market, there has been a growing demand for higher-end properties with better amenities and features. Expectations from both student and professional tenants are rising as they want more from their properties.

Modern rental properties should be more than just a roof over tenants’ heads. Renters are increasingly looking for a comfortable and stylish place to call home, with all the amenities that come with modern living.

So, how do you keep up with the most in-demand features and amenities among your target tenants? In this blog post, we’ll cover the latest rental trends, the benefits of higher-end properties, and tips for renovating new HMOs and updating existing properties in your HMO portfolio.

Changing Rental Trends

A survey of HMO landlords by Paragon Bank found that tenants are now more frequently expecting larger rooms, higher-speed broadband, quality furnishings, and ensuite bathrooms. This shows that tenants are demanding higher value HMOs and better amenities.

Another recent survey by JLL revealed that the pandemic and the cost-of-living crisis have forced tenants to rethink property priorities. And some tenants are even willing to pay more for certain features!

Modern tenants are increasingly prioritising features such as gardens and energy efficiency. The survey revealed that 66% of tenants flagged the property’s energy efficiency rating and running costs as important when deciding on a tenancy. This shows how key energy efficient improvements will be moving forward.

If you’re looking to renovate a new HMO or update your existing properties, make sure you understand these new trends and how they’re affecting the market in your local area. Take the time to become an expert on the location you’re investing in!

The Benefits of Higher-End Properties

There’s a growing demand for high-quality accommodation, particularly among young professionals. These days, people are willing to pay more for nicer properties with better amenities.

More landlords are renovating their HMO properties to meet the demands of today’s renters. Making upgrades to your HMOs can help you stay ahead of the competition, increase demand for your properties, push rents up, fill your rooms more quickly, and “future-proof” your portfolio!

5 Tips for Renovating & Updating Your HMO Portfolio

As more and more tenants are looking for high-quality HMO properties with better amenities, it’s important to stay ahead of the curve and renovate your properties accordingly.

If you’re renovating new HMOs or updating properties in your HMO portfolio, here are some tips to help you do this effectively!

1. Think about your target tenants.

Above all, you need to think about what your target tenants are looking for in their properties. Pay attention to the latest local rental trends. What amenities and features are tenants looking for and prioritising?

Also, think about ways you could make your property stand out from the competition. What can you do to make it more appealing to tenants and to impress them before they even step foot on your property?

2. Consider adding new features.

You may need to rethink your current portfolio or what you’re planning for your new HMOs. Adding new, modern features could be beneficial and allow you to better “future-proof” your property investments.

For example, students and professionals are increasingly looking for high-quality office and study space in their HMOs to help facilitate working from home and online classes. And as quality community space is important for modern tenants, we’ve found breakfast bars have been especially popular in some of our recent projects.

3. Use high-quality materials, finishes, and appliances.

If you’re renovating a new HMO or updating an existing one, make sure you focus on quality materials and finishes that will stand the test of time. Top spec features and finishes can give your property a more luxurious feel.

Additionally, while high-quality appliances may require more cash to purchase up-front, these will likely last longer, which could save you money in the long run. And eco-friendly appliances are expected to be more appealing to tenants moving forward.

4. Focus on great design.

Tenants are increasingly looking for properties with stylish, contemporary designs. Offer HMO properties and rooms that stand out and WOW your tenants. To effectively do this, you may need to get creative with the interior design of your HMOs.

Play with splashes of colour and artwork. We’ve used wall pieces of vinyl in a number of our HMOs and have found, while they’re little touches, they make a big difference to the overall look and feel of properties.

5. Factor in your budget.

Before you start getting excited about how you can transform your HMOs, look at the budget you have available to do this work. While many assume you have to have a big budget to create a higher-end HMO, there are affordable solutions to help you achieve fantastic designs.

We’ve found that interior panelling is one of the cheapest ways to transform our properties. It really can be used in any space. Pinterest is also full of unique ideas for designing properties on a budget, so utilise that platform to get some inspiration.

You may need to get creative and be forward-thinking to ensure you’re staying ahead of the curve. We can’t let our properties get left behind!

This is especially important to think about right now as tenants are expecting more from their homes and as competition increases in the HMO market.

If you want to take your HMO portfolio to the next level, 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!