Thinking of selling your HMO? It’s not quite the same as flogging your average house, but don’t worry – we’ve got you covered.
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How to Sell an HMO Property?
Right, so you’ve got this HMO and you want to sell it. Maybe you’re tired of dealing with multiple tenants, or perhaps you’ve spotted a better investment opportunity. Whatever your reason, let’s chat about how to get it done.
What’s the deal with HMOs anyway?
HMOs, or Houses in Multiple Occupation if you want to get fancy, are basically shared houses. You know, where you’ve got a bunch of people living together but they’re not family. Think student digs or young professional house shares.
To check if a property has an HMO licence, look around any communal areas.
Valuing your HMO – it’s not just about the bricks
Here’s the thing: when it comes to HMOs, it’s not just about how nice the house looks. Buyers are going to be more interested in how much money it’s making. So, get your books in order and be ready to show off those juicy rental yields.
Paperwork – yeah, it’s a pain, but you’ve got to do it
Before you even think about selling, make sure you’ve got all your ducks in a row. You’ll need:
- Your HMO licence (if you need one)
- Safety certificates (gas, electric, fire – the works)
- Tenancy agreements
- Proof of how much rent you’re raking in
Trust me, having all this ready will make your life so much easier when it comes to selling.
Who’s going to buy your HMO?
You’re not going to be selling to first-time buyers here. Your market is:
- Other landlords looking to expand their empire
- Investors after a good return
- Maybe even a university or housing association if you’re in the right area
Getting your HMO ship-shape for sale
Want to get the best price? Here’s what you need to do:
- Sort out any niggling repairs
- Give the communal areas a lick of paint
- Make sure all your paperwork’s up to date
- Get your tenants on side – let them know what’s happening
Selling options – you’ve got choices
There’s more than one way to skin a cat (not that I’m advocating cat-skinning, mind you):
| Option | Good bits | Not so good bits |
|---|---|---|
| Estate agent | They do all the legwork | Can be slow and pricey |
| Auction | Quick and potentially competitive | Might not get top dollar |
| Cash buyer | Super fast, no fuss | Usually below market value |
| HMO specialist | Knows the market inside out | Might cost you more |
Pick what works best for you and your situation.
How long’s this going to take?
How long is a piece of string? It could be anywhere from a couple of weeks (if you go with a cash buyer) to several months if you’re using a traditional estate agent. Auctions usually complete in about a month.
Can I sell with tenants still in?
Yep, you can. Some buyers actually prefer this as it means instant income. Just make sure your tenants know what’s going on.
Do I have to tell my tenants I’m selling?
You don’t have to, but it’s probably a good idea. Keeps things friendly and avoids any nasty surprises.
What about tax?
Ah, the taxman always wants his cut. You might be looking at capital gains tax when you sell. Best chat to an accountant about this one.
Can I sell just part of my HMO?
It’s possible, but it’s a bit of a faff. You’d need to split the property and might need planning permission. Probably more hassle than it’s worth, to be honest.
Top tips for selling your HMO
- Be upfront about everything – condition, finances, the lot
- Don’t get greedy with the price – be realistic
- Consider using someone who knows HMOs inside out
- Get all your paperwork sorted before you start
- Put together a nice info pack for potential buyers
How to secure a quick sale for an HMO?
Selling an HMO can be a complex and lengthy process. However, there are a few steps you can take to make it go smoother. Firstly, ensure you have all the necessary documents that we outlined earlier.
It is essential to be transparent with potential buyers about the property. If they uncover any issues that you haven’t declared, this can lead to delays, negotiations over the price, and even the buyer withdrawing from the sale.
- Choosing the right buyer is key to a quick HMO sale. Look for someone who is experienced with buying HMOs and understands the requirements for licensing and running one.
- To ensure a speedy sale, make sure the property is in good condition. Any repairs should be taken care of and all safety certificates and licences should be up to date and valid.
Sell to us!
If you need to sell your buy-to-let property or HMO quickly, don’t hesitate to contact our team. We can sell a house faster than estate agents, so you can reach your property goals without delay.
Our experience with purchasing buy-to-lets and HMOs can save you from costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and repair costs. Get the ball rolling with a free cash offer today.
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
