Frequently Asked Questions
What is a HMO?
A HMO is a ‘house in multiple occupation’ and it is achieved by taking an everyday standard residential property and using the floor plan to its full potential by renting the house out room by room and achieving rental yields of between 8% & 14%.
What about maintenance?
The majority of our housemates are working professionals who generally are full time employed and are likely to spend less time in the house than say a family of 2 adults and 2 kids. We feel the maintenance would be similar if not better than a standard rental.
What are the benefits of owning a HMO?
By increasing the number of rentable rooms per property, a HMO generates higher yields on your real estate investments compared to standard rentals. It also means you never completely lose your rental income.
Isn't share housing for students?
The majority of the people that live in our HMO's are working professionals. We have everyone from Baristas, tradesman, FIFO, Doctor's, Nurse's Interior Designers, you name it.
What about insurance?
Insurance is critical if you are renting out in your investment property. If you just have a standard landlords policy, and you go and make a claim and they find out that you have been renting the rooms out individually, you wont get any money from your insurance. We have access to an insurance underwriter who offers landlords and share house insurance specifically for this style of accommodation.
Do all housemates go on the one agreement?
You need to make sure that everybody that lives in your room-by-room rental is on his or her own agreement. We have seen some rental agreements with 4 & 5 people on the same lease, which can cause various problems. Having individual agreements means you have so much more control over the property, allowing you to bring new people in, move somebody on or make various changes to the agreement such as room rate’s etc with ease
What else is needed?
Fire and Safety
If you rent a house out to multiple people, you must upgrade the fire safety of the property. You have to install multiple smoke alarms and evacuation lighting that activates when the smoke alarm activates so people can see how to get out o the house. You also need to install evacuation signs on the back of each bedroom door, fire extinguishers, and an always free to exit handle.
What else is needed?
Its critical that in your room by room rental you have a solid set of house rules that are clear and easy to understand. In our properties, we make sure the agreement and house rules marry up with each other, and when someone moves into a room, they are required to sign their agreement and sign the house rules. We also make them visible in the house so that everybody is reminded of the rules they need to abide by.