Liverpool Student HMO

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    Liverpool Student HMO

    I am a landlord with a couple of small flats in Woolwich London. I am looking for improved yields and have been thinkinf of investing in a student 6 bed house near the Liverpool Unis.

    My concern is this market saturated? It looks as though you can buy high quality accommodation with a HMO license in place and sitting tenants already offering great yields. Sounds great.

    But there are also appears to be a lot of properties to rent in that location meeting the same criteria. Anyone know if this market is saturated?

    #2
    An HMO legally requires an HMO Manager as well as a landlord, (could be the same person). The reason is that they need a lot of management, especially student HMOs. If you let on the recommended room only basis you are responsible for the cleaning and regular inspection of communal parts. Difficult to do from London and not something an Agent is likely to take-on/do effectively. They're cheap for a reason.

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      #3
      Thanks DPT. Sounds complicated.

      Would you or anyone know how saturated the Liverpool student market actually is?

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        #4
        No idea, but you might like to take a look at this web-page: http://lightwatertpc.co.uk/2019/09/1...lats-and-hmos/

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          #5
          Hey, I have just come across this post. I live in Liverpool and very involved in the property market, I can confirm that the Liverpool market is heavily saturated with student HMO's.

          I know for a fact that before the pandemic and in the academic year 19/20 that two of the biggest private student HMO managers in Liverpool had 20-25% of their stock empty.

          Main reason for this is that the PBSA being built in huge volumes offers so much more and at a comparable price.

          My advice would be to look for a single BTL outside the city centre. You will get 7% and 8% gross yields quite comfortably.

          Local knowledge is the key, one street from the next can be poles apart.

          I hope this helps.

          Kind regards

          James Lindsey
          James Lindsey

          Liverpool

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            #6
            Also, for confirmation of the above, just search RightMove and you will find fully refurbished HMO's for sale.

            As soon as they hit RightMove you know the market is saturated. 4/5 years ago this would not be the case.
            James Lindsey

            Liverpool

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              #7
              PBSAs are the saving grace for us students that are finally killing off the student slumlords. Even though I can't afford to live in one, it's so good to see the mouldy, poorly converted, unmaintained, unsuitable HMOs being left empty.

              It's incredible how students are some of the most lucrative tenants, yet have some of the worst houses in Britain. I think very few families will pay £27.3k in rent per year, but my housemates did in our last house, and it was an absolute hell house. (Save The Student even asked to write a story about my house after I posted some pictures online! https://www.savethestudent.org/accom...ent-house.html )

              For that kind of rent we should have a bright, well maintained, modern house, with good furniture and all the trimmings, it should be cleaned and repaired before we move in, and perhaps a bi-weekly/monthly cleaner for the communal areas. (We were very strict with a daily rota for cleaning the kitchen, but the previous tenants evidently were not so pragmatic).

              We saw our Landlord's house, it was like a footballer's mansion. (He had over 40 properties according to our gas inspector)

              For once it seems like the market is working, and those providing an inadequate service will go out of business.

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                #8
                oscarvl, I think you're extrapolating too much from one bad experience. I used to rent a student house on the south coast and with no college halls of residence it was a busy and thriving market. There was an over-supply and the poorer quality properties were always the ones left on the shelf when the term started. There are still poor quality rental properties about, but I don't think there's any evidence that they're concentrated on the student market.

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                  #9
                  Having been a student and the parent of a student, the first year living (off campus) is usually the worst property.
                  Students haven't generally a clue and often end up in terrible (and expensive) accommodation first time round
                  After that initial experience, they find much better accommodation thereafter.
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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                    #10
                    That was certainly my experience. When I remember the “ full house “ of horrors in Leytonstone I shudder. Tax dodging, sexually harassing landlord, smell of urine in the ground floor bedroom, mushroom growth above the kitchen sink, withholding of deposit. We had the lot. We were naive, poorly organised used and didn’t get looking for a place until the summer holidays, so we got the dregs.

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                      #11
                      Funny, my experience is the other way around, the earlier you look for a student house the more likely you are too get a crap house and pay over the odds.

                      ​​​​​​Letting agents and landlords are going to show the houses they expect to be hardest to let first, the more people they show it to, the more likely they'll find a group of naive Freshers who don't know any better.

                      This year some of my friends chose their house 7 days before their old contract ended. I thought they were crazy, but there were plenty of houses available for viewings, they were all at cut price. They're paying £1200 less in rent compared to me (per tenant per year) for a comparable house. The trick is to let the landlords sweat a bit.

                      ​​​​​

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                        #12
                        The elephant in the room is that the Local Authorities do not enforce the standards required. Some Local Authorities take money for registration of properties and never visit or check anything.

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