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
Location
Determine target market
Transport, buses, trains, commuter route
Close to a university or hospital
Demand and supply in the area
Finance
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?
Valuation
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?
