Have High Energy Costs Killed HMOs?

Many believe that the recent upheaval in energy cost prices has killed the HMO strategy, due to the fact that landlords are now losing money by paying higher bills for tenants. But as Simon explains in this week's show, that belief may not be correct... KEY TAKEAWAYS There are different types of tenants in HMOs - students, young professionals, workers and those on benefits. Interestingly, only two of those groups require their bills to be paid. There are differing sizes of HMOs. A "mini-mo" may only house three or four people, are usually in smaller, lower cost properties. If you've done your numbers and your diligence, then you should be making the appropriate amount of profit each month depending on your property size. Even if energy prices do rise, your profits should be more than enough to cover it. Rent increases are acceptable to most these days as costs have to track against the rise in inflation. Tenants realise this and are prepared. BEST MOMENTS 'A standard 5 bed HMO should make at least £1,000 profit per month' 'If you're doing the larger properties, even if the energy costs have doubled it shouldn't make that much difference' 'The increase that we're putting on the rent covers the rise in energy costs' VALUABLE RESOURCES  To join some like online training with Simon about HMOs register here:  www.HMOcourse.co.uk Property Magic: How to Buy Property Using Other People's Time, Money and Experience by Simon Zutshi Find out about the Global PIN Meetings at www.globalpinmeeting.com To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20). iphone:  http://bit.ly/pinAPP1 Android https://bit.ly/pinAPP2 Register at Mindset For Property at - www.mindsetforproperty.co.uk  ABOUT THE HOST Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk.    pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way.  How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals. CONTACT METHOD Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi  LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/