Pro Tool
Calculate HMO yield room by room. Compare HMO vs single-let returns. Factor in higher costs, voids, and management. UK-specific, instant results.
Calculate Your SDLT — FreeGross HMO yields in the UK typically range from 10-15%, compared to 5-8% for single-lets. However, net yields are lower once you account for landlord-paid bills, higher management fees, and faster turnover. A well-run HMO might net 7-10% — still significantly above single-let returns.
HMO landlords typically pay council tax, gas, electricity, water, broadband, communal area cleaning, and higher insurance premiums. Management fees are also higher (12-15% vs 8-10% for single-lets). These costs can total £300-£600/month for a 4-5 room HMO.
Room rents vary hugely by location. In Northern cities, £400-£600/room is typical. In the South East, £550-£800/room. London can exceed £800-£1,200/room. En-suite rooms command a 15-25% premium. Our tool lets you set individual room rents based on your local market.
Usually yes, but not always. A 4-room HMO might gross £2,200/mo vs £950/mo as a single-let — but after landlord-paid bills and higher management, the net difference is smaller. The break-even calculation depends on your specific property and local costs. Our tool compares both strategies clearly.
Conversion typically involves adding locks to bedroom doors, upgrading fire safety (fire doors, alarms, extinguishers), ensuring minimum room sizes, and improving kitchen/bathroom ratios. Some conversions add en-suites to boost room rents. Budget £5,000-£30,000 depending on the scope. Check licensing requirements first.