When it comes to investing in HMO properties, the conventional wisdom often points towards big cities and bustling student populations. But for us, we’ve found success in less obvious locations, and we’re here to share why.

Let’s debunk the myth that big cities are the ideal HMO locations. Yes, they may offer a large pool of potential tenants, but they also come with a hefty price tag and fierce competition. Take Nottingham, for example – neighbouring cities like Birmingham and Liverpool boast sky-high property prices, making it challenging to secure a profitable investment.

In these city centers, the student HMO market is particularly saturated and competitive. Purchasing a property for £350,000 and then investing in conversion costs is simply not feasible for many investors. Add in the complications of Article 4 planning permissions, and the hurdles become even higher.

But there’s a simpler, more cost-effective way to invest in HMO properties. Instead of chasing the glitz and glamour of city life, we’ve found success in less obvious areas like Rotherham and Derby. Here, property prices are more reasonable, allowing us to invest in premium specifications without breaking the bank.

Renting to working-class tenants in these areas offers numerous advantages. They’re hard workers, less demanding, and tend to take better care of the property. With fewer parties and disturbances, property management becomes a breeze.

Sure, shiny student flats may seem appealing, but for us, the working-class areas are where the real opportunities lie. They’re simple to look after, rarely presenting any major issues, and consistently deliver solid returns.

In conclusion, when it comes to HMO investments, thinking outside the box and exploring unconventional locations can lead to surprising success. It’s all about finding the right balance between affordability, tenant profile, and rental potential. So before you dive into the crowded city market, consider the untapped potential of less obvious locations – it might just be the key to your next profitable investment.