Table of Contents
Types of Properties Available
- Manchester
Deposit
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Yield
Property Price
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- Manchester
Deposit
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Yield
Property Price
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- Manchester
Deposit
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Yield
Property Price
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What is an HMO?
Let’s get straight into the definition and details. You must be familiar with the term HMO, but what does it actually refer to? Putting it in simple terms, an HMO (House in Multiple Occupation) is a property rented to three or more unrelated tenants who share facilities such as a kitchen or bathroom.
Think of it as a house full of young professionals or students splitting the rent. You’re not renting to one family, but several individuals. Sounds like a bit more work, right? But here’s the thing—you could be looking at much higher rent because each tenant pays their share.
Honestly, you may be a bit confused as you first get to know about HMOs. There are all these licensing requirements, fire safety checks, and rules from the council that you have to follow. But once you figure it out, everything will make sense.
Higher rent from multiple tenants, fewer chances of having an empty property (because it’s rare all tenants leave at once), and a steady income stream. Yes, it’s more paperwork but it’s worth it for the cash flow.
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Why Invest in Manchester?
Now, you must be struck with a question, “Of all places, why Manchester?” Well, please be informed of the fact that Manchester is one of the fastest-growing cities in the UK.
Be it students, or professionals – all seek to enjoy living in affordable housing options. Areas like Fallowfield and Withington, they’re goldmines for shared housing. You’ve got students looking for accommodation during term time, and young professionals searching for a place close to the city centre.
What would really catch your attention about Manchester, is the balance between property prices and rental yields. You’re not spending London-level money, but you can still get some pretty high returns on your investment. Plus, the city’s economy is booming.
New jobs, new infrastructure projects, and regeneration are all over the place. We’ve seen property values rise over time, so it’s not just about rental income—you’re also looking at solid capital growth. If you’re serious about long-term property investment, Manchester has got to be on your list.
Benefits of Living in HMOs in Manchester
Usually, tenants who think about living in an HMO in Manchester, they are not sure what to expect. Despite being aware of a variety of things, they realised the true affordability of living in the city with this modern approach. Manchester is a fantastic place, but let us face it, rent prices in the good areas can be a bit steep, especially if you want to be near the university or the centre. Splitting the rent in an HMO means you are not breaking the bank every month.
Another thing tenants did not expect was how social it could be. It is not just about cutting costs—but also about meeting new people. Initially, when they moved into an HMO with a few strangers, it turned out to be one of the best decisions. Who knew that they would become good friends? Enjoying house parties after work, or cooking together on weekends!
In terms of convenience, most HMOs are fully furnished, so you do not have to worry about dragging furniture here and there. Tenants often prefer the option of not having to deal with the hassles of purchasing a bed or couch. Also, the flexibility in lease terms is a plus point for them. Some tenants are unsure about how long they’ll stay in Manchester, so the idea of being tied into a year-long lease is not ideal. Luckily, many HMO landlords offer shorter-term agreements, which gives them peace of mind.
Starting an HMO means your property is in a great location. Many HMOs are smack in the middle of all the action—near the bars, the public transport links, and close enough to both work and play. This can be a huge selling point, allowing tenants to be a part of the city’s buzz without having to sacrifice all their savings on rent.
Legal Requirements and Licensing for HMO Properties in Manchester
Alright, so let us talk about the legal stuff—because trust us, if you are thinking about running an HMO in Manchester, you need to get this right from the start. When you first start looking into HMOs, you’ll likely be surprised by the amount of paperwork and regulations involved here, in comparison to traditional rentals. And, well, it can be a bit overwhelming at first. But do not stress too much—once you know what is required, it is manageable.
First up, the big thing: licensing. If your property is going to house three or more unrelated tenants, you need an HMO licence from Manchester City Council. It is not optional, and you could face some serious fines if you skip it.
Some of our investors went through this process themselves, and, yes, they felt like jumping through hoops. The council is going to check everything from fire safety measures to the size of the rooms. You have to meet a bunch of safety standards to make sure the place is safe and comfortable for tenants.
One more thing—you have to keep up with the city’s Selective Licensing Scheme. This does not apply to every property, but in certain areas of Manchester, even if your place is not technically an HMO, you might still need a licence. It is all about location.
So, it is always worth double-checking to make sure you are not missing any requirements for the specific area your property is in. An investor nearly overlooked this with one of his properties in Fallowfield. That would have been an expensive mistake!
Ultimately, getting your licence does not mean you are free from fines or penalties but it’s rather about your peace of mind. Once you are sure that your property is compliant with all the building regulations and licensing requirements, you have time to smoothly run the property and simultaneously ensure your tenants are happy. Honestly, it is worth the effort upfront so you do not have to deal with complications in the future.
HMO Licensing Process
Getting an HMO licence can be difficult. We understand that. Some investors went through the process without knowing what to expect. But, once you break it down, it is not as complicated as it seems. Firstly, you will need to apply through Manchester City Council if you are running an HMO in the city.
Their website is probably the best place to start. Secondly, you will need to fill out the application form, and they are going to ask for details about your property—like how many tenants you plan to have, room layouts, and whether you have the necessary safety measures in place (think fire alarms, escape routes, all that stuff).
Honestly, the biggest piece of advice we can give you? Get your paperwork in order early. You do not want to be scrambling at the last minute. Make sure you have all the right certificates for gas, electrical safety, and fire safety—it is a lot, but it is non-negotiable.
Trust us, you will thank yourself later if you have everything sorted before you start. Another thing to remember is that some areas in Manchester have additional licensing schemes, so check to see if your property falls into one of those zones. It is better to know before you get too far along.
Common Mistakes to Avoid in the Licensing Process
It has been observed that a common mistake is room sizes. It is so easy to overlook, but Manchester City Council is strict about minimum room sizes in HMOs. If your rooms are even slightly too small, you could be looking at major delays—or worse, a rejected licence. An investor had to remeasure rooms of his property after realising they were just under the requirement. It was a nightmare for him.
Another mistake you have to see is around fire safety. You might think your property is safe, but unless you have got the proper fire doors, smoke alarms, and escape routes in place, you are not going to pass inspection. Do not assume it is good enough—have a professional come in and check. Better safe than sorry, right?
One last thing: Do not wait until the last minute to submit your application. The council can take weeks to process everything, and if there are any issues, that waiting time gets even longer. So start early. Avoiding these common mistakes will save you a ton of stress and probably some money too.
Angel Gardens
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
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Property Price
Maximising Returns on Your HMO Investment in Manchester
Alright, if you are drawn towards HMO investments in Manchester, please be aware of how to get the most out of it. Because no one would want to just break even—one would rather prefer to maximise those returns. Isn’t that right? Our experience says this and we strongly believe – a little bit of planning can make a greater impact.
Location is the foremost priority, you know how they say, “Location, location, location”? It is undeniably true, especially when speaking about HMOs. If you are considering students your target base, you would want to look at places like Fallowfield or Rusholme—those areas are bustling with campus life.
On the contrary, if young professionals are more your thing, then areas like Didsbury or Ancoats are where you should focus. Many investors learned this the hard way after buying a property in the wrong part of town for their target tenants. The returns were okay, but nothing compared to when one gets the location right.
Then there is the property layout. This is key. You want to maximise the number of rentable rooms without breaking any rules, of course. An investor once had a property with a huge living room, and he decided to split it into an extra bedroom. Boom—just like that, he pulled in extra rent each month.
It is all about using the space wisely. But be careful with this one; you do not want to cut corners with room sizes because Manchester City Council has strict regulations regarding such cases. Trust us, follow the rules, and you will be fine.
Renovations are another area where you can make a difference. You do not have to go all out, but a few upgrades can really push up the rental value. Fresh paint, modern kitchens, or updated bathrooms—they all make a property much more appealing.
An investor did a simple kitchen makeover once, and suddenly tenants were willing to pay a bit more for the place. It is small stuff, but it works. And do not forget about regular maintenance either. Keeping your property in good shape saves you from costly repairs down the line, and it keeps tenants happy. Happy tenants stick around, which leads us to the next point.
Finally, heading to the most crucial point, “tenant management.” We cannot stress this enough—good relationships with your tenants can make or break your returns. You do not want empty rooms, so keeping your tenants happy means fewer void periods.
You must carefully listen to their concerns, be quick with repairs whenever required, and try to keep the place in seemingly good condition. Many investors had a couple of void periods early on because they did not respond fast enough to tenant issues.
Summarising it up, get the location right, optimise your space with smart renovations, and keep your tenants happy. While ensuring all these things, you will definitely see those returns multiply.
HMO Market Trends and Statistics
In terms of numerical data, the average rental yield in Manchester is between 8-10%, which is quite higher than many standard rental properties. The reason behind this is the growing population of students and the influx of young professionals in the city. The continued regeneration of areas like Ancoats and Salford is also boosting property values, giving investors both solid rental income and capital appreciation.
One thing to keep an eye on is selective licensing. Certain areas of Manchester now require additional licences to ensure properties meet safety and living standards, so it is worth checking whether your investment falls into one of these zones.
Conclusion
The HMO market in Manchester is scaling higher, therefore, now is the time to invest. We have observed the demand for HMOs with good-sized spaces, modern amenities, and well-maintained communal areas is considerably higher.
Be it, students or young professionals, tenants look for something more than a basic room. If you are up for catering to such demands, you can easily charge higher rent and reduce void periods. All in all, Manchester’s HMO market is booming, but keeping up with trends is key to maximising returns.
Area Guide
Tom Collins
I’m your go-to broker, on a mission to make things simple and smooth when making your investment with me! My journey at Flambard Williams has been shaped by working in various financial fields and working closely with clients and their goals.
