Tips for managing your HMO

Managing an HMO is an ongoing process. Even when you think you have filled the property and have the perfect combination of tenants, it is unlikely to last long. By their very nature, tenancies in HMOs tend to be short and more changeable.

A house of multiple occupants or HMO is a property where the landlord rents out rooms to individuals or occasionally couples. These rooms will have shared living spaces and kitchens, though bathrooms are likely to be private or ensuite in most cases.

Adding new tenants to an HMO

The type of people living in HMOs are often young professionals or those who have had a significant change in circumstance recently, and as such, both these groups are unlikely to stay in the same property for years and years. It is far more likely they will either move around to follow work opportunities or move on to a single-family property with a partner or similar as they settle down.

This means that the group of tenants living in an HMO changes relatively frequently. You need to remember that the occupants of an HMO are effectively strangers, so when you introduce a new member to the household, it is always going to cause some level of friction in the short term.

Some landlords try to combat this by attempting to avoid the conflict altogether. But there will always be some level of conflict when a new tenant is added, so the key is to attempt to minimise the level of conflict but to also be ready to step in and manage any conflict that does arise.

How to reduce the conflict of a new HMO tenant?

An important element in reducing conflict is communication. Make sure all the current tenants of the HMO are aware that you are looking for a new tenant and what that process will involve. Give them good warning of any possible disruptions. This could include when the letting agent is coming to photograph the property if required, or when a cleaning team is going to sort out the now vacant room, or when you are bringing a prospective tenant to view the property. By making this communication clear and two-way, it will help to reduce any resistance or stress from the existing tenants. By keeping existing tenants informed and reduced the risk of friction you may even encourage existing tenants to be welcoming to the prospective tenant when they view the property.

Another important thing to consider is the existing dynamic of the HMO. Some of the best HMOs we have worked with are those that have a level of theming which works to actively attract similar tenants who are potentially more likely to get on. This isn’t about excluding anyone, but rather positioning your HMO as a particular dynamic or house culture.

For example, if you have an HMO where all the tenants happen to be men in their 20s who are creative young professionals, it is unlikely that a 50-year-old man who has always worked in a physical job would gel well within the existing group. That doesn’t mean to say it definitely wouldn’t work, but you would be more likely to find a good fit from someone of a similar age and lifestyle to the existing group.

As an extension of this, it is important that your letting agent has a clear idea of the existing dynamic within the HMO and the type of tenant you think would be most suited. With this information, a good letting agent will communicate with potential tenants to get a good understanding of whether a particular HMO would be a good fit for them and will explain to the potential tenant why one property might be more suitable than another.

Managing conflict once the new tenant arrives

Once your new tenant is in, you should try to be ready to help if conflict does arise. This could include being easy to contact and ready to be an impartial mediator if needed. It is likely the existing tenants will have developed norms which to them make complete sense and are simply unsaid rules of the house. This could include things like where specific food is stored or having a specific mug for each person. These may seem trivial things from the outside, but they can easily lead to friction that could then develop into a more significant conflict.

By the same token, the new tenant is likely to have behaviours which seem completely normal to them but do not fit with the established norms of the HMO, and this can also lead to confusion and friction.

Managing an HMO can be time consuming

If you already own an HMO, you will know that managing it can seem like a full-time job, and if you are a full-time landlord you may be happy to deal with the time an HMO takes. But if you are a newbie landlord, have become an accidental landlord of an HMO or are looking to have less stress from your HMO, then bringing on a letting agent to manage the property is a good step.

At Bright Star Lettings, we manage multiple HMOs around Torbay, the South Hams and the surrounding areas. We pride ourselves on our personal touch that allows us to match tenants to the right HMO for them and to manage or minimise conflict wherever possible.

We take a hands-on approach and can offer flexible service options for HMOs, from one-off services to ongoing management, or something in between.

So, if you have an HMO that is taking up too much of your time, get in touch today for a chat about how we can help.