11 Top Tips For HMO Landlords

If you have been looking into HMO mortgages or HMO finance, then we are here to help. We asked our clients and our finance consultants for their top tips for buying and mortgaging a house of multiple occupation.


Make sure you have the relevant license in place or if you have just converted the property into an HMO make sure you have an application lodged with the local council. Planning changed again in October 2018.


Check the HMO criteria for your local area as this can differ between locations.

Bank accounts

Set up a separate bank account for your rents to run through.  It’s a simple way for lenders to check your rental income and will help you should you wish to venture into more HMO properties – this can help with your HMO finance application.


Choose your location wisely.  Locations around hospitals, universities and science parks can provide good returns.

Maximize borrowing

Purchasing via a Ltd company structure can help to maximize your borrowing, plus ltd company rates are no more expensive nowadays.

Rental voids

Consider rental voids.  Fox example student HMO’s may be empty during the summer holidays.

Beneficial spaces

Try and keep a communal area such as a lounge or kitchen diner in the property, lenders prefer to see this.


Make sure tenants are on Assured Shorthold Tenancy Agreements.  Lenders will not lend if ASTs are not in place.

Gain experience

Work your way up to an HMO.  Most lenders like a landlord to have at least 12 months letting experience before embarking on an HMO.


If you can buy a standard property and convert it to an HMO then you will add instant capital value, this is a great way of flipping property too.

Stay organised 

Keep a portfolio spreadsheet to include: address, number of bedrooms, value, existing mortgage balance, monthly rent, monthly mortgage payment, lender, rate end date.  It enables you to keep a track on your properties and make sure you are never stuck on a lenders variable rate. 

Fox Davidson can help you with all that we have mentioned  – don’t put off delving into the rental world of HMO mortgages. Bristol-based and independent, we are a whole of market UK mortgage broker with a team of award-winning property finance consultants.

To find out more about HMO mortgages or if you have any other questions, don’t hesitate to contact one of the experts at Fox Davidson today.