How to organise houses in multiple occupation (HMOs) finance checklist


Checklist provided by

Brooklands Commercial Finance



Your property is probably an HMO if:

  • Three or more unrelated people live there, as at least two separate households – for example, three single people with their own rooms or two couples each sharing a room.

  • The people living there share basic amenities - for example a kitchen and/or a bathroom

Types of HMOs

  • A house split into separate bedsits

  • A shared house or flat, where the sharers are not members of the same family

  • A hostel

  • A bed and breakfast that is not just for holidays

  • Shared accommodation for students


  • Determine target market

  • Transport, buses, trains, commuter route

  • Close to a university or hospital

  • Demand and supply in the area



  • Gross yield versus net yield

  • Is your broker FCA regulated?

  • Is your broker a full member of the National Association of Commercial Finance Brokers?

  • Experienced HMO landlord?



  • Bricks & Mortar Value - where a property is valued in accordance with its neighbouring properties

  • Investment Value - where a property is valued on its investment value or a multiple of its income

  Is the borrower going to be a limited company or an individual?

Is planning permission required?

Is a HMO licence required?


All our information is brought to you by Kate Faulkner OBE, author of Which? Property books and one of the UK's top property experts.
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