10 Key Features of a Successful HMO Property – HMO Investment Tips
Houses in Multiple Occupation (HMOs) have become a popular investment strategy for UK landlords looking to maximise rental yields. By letting individual rooms within a single property to unrelated tenants, landlords can generate significantly more income than with traditional single lets. But not all HMOs are created equal.
A successful HMO isn’t just about squeezing in as many rooms as possible — it’s about designing a space that’s compliant, attractive, and functional. The right features will not only ensure tenant satisfaction and safety, but also reduce void periods and boost long-term profitability.
Here are 10 essential features every HMO property should have:
1. Prime Location
Location is everything in property — and even more so for HMOs. Your ideal tenant might be a student, young professional, or key worker, but in every case, convenience is key.
- Close to transport links: Easy access to train stations, bus routes or major roads is a must.
- Local amenities: Shops, supermarkets, and takeaways within walking distance are attractive for tenants.
- Employment or education hubs: If your HMO is near a hospital, university, or business district, demand will be much higher.
Tip: Use tools like SpareRoom or Rightmove to research tenant demand in different areas. For instance, student HMOs perform well in towns like Manchester, Leeds or Nottingham, whereas professional lets may be more suited to commuter belts near London or Birmingham.
2. Property Layout and Type
Not all property types convert well into HMOs. Semi-detached and terraced houses tend to be the sweet spot — detached properties offer more freedom but can come with higher costs.
When assessing suitability:
- Can rooms be reconfigured easily? Avoid awkward layouts that require expensive structural changes.
- Natural light and ventilation: Every habitable room must have a window — it’s a licensing requirement in many councils.
- Layout flow: Consider traffic through the property — e.g., you don’t want a tenant passing through another’s bedroom to reach the kitchen.
3. Spacious Bedrooms
Size matters. According to UK law, any bedroom let to a single adult must be at least 6.51m² (or 10.22m² for two adults). But legal minimums don’t always mean tenant satisfaction.
- Sensible layout: Can the room fit a bed, wardrobe, desk and still feel comfortable?
- Furnished vs unfurnished: Most HMOs offer furnished rooms (bed, wardrobe, desk, chair), especially in professional or student markets.
- Room shape: Square or rectangular rooms work better than narrow or L-shaped ones.
Pro tip: Bigger rooms attract better tenants and command higher rents. A double room with en suite in a professional HMO can fetch £550–£750 pcm depending on location.
Modern HMO property exterior in a high-demand UK area
4. Quality Communal Areas
Tenants spend most of their time in their own rooms, but a well-designed communal space is vital for overall satisfaction and social harmony.
- Kitchen: Must be large enough to accommodate all tenants. Think multiple hobs/ovens, ample fridge/freezer space, and storage cupboards.
- Lounge/Dining space: Adds huge value — especially for professional lets. Even a modest sofa and TV setup can make a big difference.
- Outdoor space: A tidy back yard or small garden is a plus, particularly for summer barbecues or smoking tenants.
Fact: A 2023 SpareRoom survey found that 68% of tenants are more likely to stay longer in properties with communal lounges.
5. Bathrooms
Tenants won’t tolerate long queues for the shower. The golden rule is:
- 1 bathroom per 3-4 tenants. For 5 tenants, ideally 2 bathrooms or 1 bathroom plus 1 en suite.
- En suites: These are increasingly popular, particularly with young professionals. They allow landlords to charge a premium (£50–£100 more per month).
- Cleanliness: Easy-to-clean surfaces, extractor fans, and good water pressure are all essential.
Stat: Properties with en suite options can reduce void periods by up to 30%, according to PropertyData.
6. Safety & Compliance
This isn’t just about ticking boxes — it’s about protecting lives and your investment.
Key compliance features include:
- Fire doors and smoke alarms (interlinked across all levels)
- Emergency lighting and fire blankets/extinguishers
- Annual gas safety check and 5-year electrical check
- Valid HMO licence (mandatory for 5+ tenants sharing facilities)
Failure to comply can lead to fines up to £30,000 and loss of licence — don’t cut corners.
7. Efficient Heating and Insulation
Energy costs are one of the biggest outgoings for HMO landlords — especially if bills are included in the rent.
- Double glazing and cavity wall insulation help reduce heat loss.
- Modern combi boilers with thermostatic radiator valves give better control.
- Hot water tanks or unvented cylinders may be necessary for larger HMOs.
Energy tip: From 2025, all new tenancies must meet EPC rating C or above. Retrofitting now could save future headaches — and boost tenant appeal.
8. Internet & Utilities
Reliable broadband is non-negotiable in HMOs—especially with the rise of remote working.
- Fibre broadband (100Mbps+) is expected as standard.
- Bills included? Most HMOs offer this for simplicity — tenants prefer it, and it helps avoid disputes.
- Consider a fair usage clause in your tenancy agreements to protect against excessive use.
Note: Some landlords use smart meters or utility management platforms to monitor usage and avoid unexpected bills.
9. Storage and Laundry
These might seem like “nice-to-haves,” but they’re often deal-breakers for tenants.
- Kitchen storage: Each tenant should have a dedicated cupboard and fridge shelf.
- Laundry: Washer/dryer combos or separate machines — ideally not in the kitchen if space allows.
- Bike storage/sheds: Particularly valuable in city areas or for student lets.
Tenant insight: A study by OpenRent found that properties with laundry and bike storage rented 14% faster.
10. Managing Agents
Even the best HMOs can fall apart with poor management. Tenants expect:
- Quick responses to maintenance issues
- Clean communal areas (often achieved with fortnightly cleaners)
- Clear communication — especially for check-ins, bills, and house rules
Good management = longer tenancies, less drama, and better reviews.
Tip: Consider specialist HMO managing agents — they understand the model better than general high street agents.
Conclusion
A successful HMO doesn’t happen by accident. It’s the result of careful planning, attention to detail, and a deep understanding of what tenants want — and what regulations demand.
Each of these 10 features plays a vital role in:
- Maximising rental income
- Reducing void periods
- Ensuring tenant satisfaction and long-term success
Whether you’re converting your first property or expanding your portfolio, keeping these principles at the forefront of your strategy will put you on the path to HMO success.
