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Maximise profits with HMO Title Splitting

Title Splitting is the only strategy that enables you to Title Split a HMO to access Capital Growth

We can show you how to have capital market growth and HMO cashflow in the same property!
You might have started by buying, refurbishing and refinancing (BRR) single let properties.
You might have grown cashflow with HMO’s or Serviced Accommodation. Now you need to diversify.
The next level is to do TitleSplit’s and Commercial Developments.

The benefit of HMO to Title Split

One of the best ways to achieve Money In Money Out (MIMO) on your HMO project is to add more bedrooms or units (otherwise known as a suis generis HMO). While this is great news for your original valuation, this could over time lead to lower future valuations. Here’s why…
  • Rents in HMOs (particularly in busy HMO areas) tend to be at their highest when you have refurbished your property
  • Market pressure and competition can have an impact on your ability to increase rents
  • In saturated areas you may end up with voids at some point in the future. This can impact valuation
  • Increased bills (bills included) will result in a decreased suis generis (investment/commercial) valuations
  • Rent and yield are used to value your HMO
  • Commercial/investment/large HMO valuations are based upon the rent of the property and the average yield of the area
  • Small HMOs are based on rent coverage and comparable market values (capital valuations)
  • In many instances if you do not increase your rents, your valuation in 2 or 5 years will be lower (when based upon rent and yield)
  • Finally when you sell you can only sell to another investor
  • Switch your strategy to TitleSplitting blocks to make massive cashflow and capital growth and solve all of these problems

Title Splitting for a Profitable HMO

Creating leasehold apartments within freehold buildings is the answer!!!
Access

This will give you access to bricks and mortar valuations (in many areas these can be 20% higher than a block or suis generis valuation).

Choose

You will be able to choose a commercial valuation or bricks and mortar valuation (split value), dependent on what works best for you.

Sell

You can sell to individual retail buyers or an investor in time… your choice.

We are the foremost experts in this strategy in the UK

We show you exactly how to make profit from this strategy, just like with a HMO. In our online masterclass we will tell you exactly why this strategy is essential to ensure you get the maximum valuations and sales prices in the future for your HMOs and blocks.

Sign up to your Title Split Online Masterclass

Frequently Asked Questions

01
How in-demand are HMOs in 2024?

HMOs continue to be highly sought after, especially in areas where demand is robust. Converting Title Split blocks of 2-bed flats into individually rented HMO rooms is a particularly attractive strategy, catering to renters who prefer the simplicity of not handling bills themselves.

02
Does converting a single property into an HMO make it more valuable?

Certainly, any strategy that increases the number of bedrooms tends to enhance a property’s value. Converting a single property into an HMO, thereby maximizing the number of rentable rooms, is a proven way to boost its overall value.

03
What costs are usually involved in converting a property into an HMO?

Converting a property into an HMO often entails a comprehensive refurbishment, covering aspects such as rewiring, insulation, fire regulation upgrades, structural work, new kitchens and bathrooms, and high-quality decoration. These investments are crucial for compliance and tenant satisfaction.

04
What is involved in obtaining planning permission for an HMO?

Generally, no planning permission is required for small HMOs with up to 6 people. However, larger HMOs (7 or more occupants) may necessitate planning permission. It’s important to check for article 4 directions in the area, as planning might be required for 3 unrelated sharers.

05
Are there any properties that cannot be converted into HMOs?

Yes, in some instances, planning permission might not be granted, depending on local regulations and property characteristics.

06
How common are HMOs in the average property portfolio?

The prevalence of HMOs in a property portfolio varies based on investor preferences. Some investors find the higher potential profits attractive, while others may prefer a mix of property types for diversification.

07
How much profit can I expect from an HMO?

HMOs can yield higher profits compared to single let properties, but it’s crucial to factor in all associated costs. Consider elements like bills, repairs, and agent fees, especially if landlords cover utility costs.

08
What makes an HMO a more profitable choice over a buy-to-let property?

The increased number of rentable bedrooms in an HMO often translates to higher rental income. Charging rent per room can result in a more lucrative venture, though careful consideration of operating costs is essential. Some investors prefer Title Splitting apartments and renting to individual tenants who handle their own bills for added simplicity.