This 6 bed semi is situated at Broadway North (Nr. Arboretum Park), Walsall, WS1. On the market with Acorn & Co (01922 312060). Priced at £250,000. Full details can be found by following the link below:
This property which has just come on the market as of yesterday (23/10/15), made me think…hmm…maybe one as a HMO (House in Multiple Occupation)? Looking at the yields by making some minor changes (i.e. fire doors, alarms, locks and possibly some furniture) we are looking at minimum yields of 10.6%. Personally, I would make some further changes looking to achieve an even healthier yield of around 14.1% and upwards with minimal outlay for maximum returns. But is all as rosy as it looks….???
The property is certainly impressive in terms of space, room size and layout. The location is ideal being a 5 minute walk from the Town Centre with the garden backing onto the Walsall Arboretum Park. From the pictures the property looks immaculate and in good decorative order. Clearly and impressive family home but will it work as a HMO?
If you are considering going into this market for the first time then you have to be prepared for the intensive management a HMO will require of you such as regular risk assessments and method statements. Before proceeding you need to check with the local authority if there are any restrictions on the amount of HMO’s they will allow in the area and if there are any requirements with licences.
One of the concerns I have is around parking at the place. The property particulars don’t mention anything which could potentially be a big negative. You would then have to consider the potential demographic of the tenant market you will be aiming for as all demographics will suit (professional single or couple/ unemployed 35+/ student) however, choosing the correct/ incorrect demographic could potentially affect your overall yield so you’ll need to be diligent and shrewd in making your decision. I know what I would do….
If you are thinking of entering the HMO market or currently own one and wish to discuss buying or making changes please feel free to contact me.
Phone: 0345 257 9850/ 01922 637672