HMO Investment in Wigan 

What is a HMO?

HMO stands for ‘House in Multiple Occupation’. For a property to be classed as a HMO, it must be rented by at least three people from separate households, and the tenants must share communal facilities like the bathroom or kitchen.

Why invest in a HMO?

For buy-to-let landlords, investing in a HMO property comes with many appealing advantages:

• HMOs tend to be more lucrative than other properties because rental yields can be up to three times higher.
•  Void periods will have less of a financial impact on you, as you’re likely to always have other tenants in the property if one leaves or falls behind on their rent.
• HMOs are in high demand and often attract young professionals who are looking for a place to rent that is not only flexible, but affordable too.

Important considerations for HMO landlords

Before investing in a HMO, it’s important to understand what may be required of you.

HMO licences

Most HMOs require a licence. You will need to obtain a HMO licence if the property in question falls under the following stipulations:

• At least five people from more than one household will live there
•  The property is three or more stories high
•  Tenants will share facilities (like the kitchen and bathroom)

Read HMO licencing advice from Wigan Council.

Planning permission

To convert a property into a HMO, you may be required to obtain planning permission.

Read about planning permission in Wigan.

Wigan’s future

If you’re going to set up a HMO, it’s important to have an idea of what the future may look like for Wigan and surrounding areas. This includes researching infrastructural and environmental plans.

Read about Wigan’s 2030 plan.