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Landlords Training Day – July 2010 Rick Walton – 07717 210690 Houses in Multiple Occupation (HMOs) Deal or No Deal ?

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Presentation on theme: "Landlords Training Day – July 2010 Rick Walton – 07717 210690 Houses in Multiple Occupation (HMOs) Deal or No Deal ?"— Presentation transcript:

1 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Houses in Multiple Occupation (HMOs) Deal or No Deal ?

2 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Contents Introduction - Who am I ? What are HMOs ? Investment opportunities. Doing the sums. Who do we need to talk to ? Top tips / best practices. Q & A.

3 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Introduction - Who am I ? Former Mechanical Engineer Full-time Property Investor Invest in Buy-to-lets, HMOs & Refurb Projects Consultant for Property Training Companies 5-year member (042666)

4 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com What are HMOs ? Houses in Multiple Occupation Multi-lets Houseshares Planning & Licensing Regulations Fire Safety Requirements Noise & nuisance to neighbours

5 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Investment opportunities Universities Large Hospitals High concentration of young professionals High demand from Local Authority

6 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Doing the sums Research – Demand – Rental Prices – Properties Consider all costs Professional Fees Comparison to other investments

7 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Doing the sums 3 bedroom terrace property – Purchase Price£85,000 – Refurbishment£15,000 – Rent (4 @ £80pw)£ 1,380 p.c.m. – Borrowing (@6%)£ 325 p.c.m. – Management (12%)£ 166 p.c.m. – Other costs (18%)£ 248 p.c.m. – CASHFLOW£ 641 p.c.m.

8 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Who do we need to talk to ? Finance Brokers Power Team Letting / Managing Agent Council – Private Sector Housing (EHO) – Planning Department

9 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Top tips / best practices Don’t cut corners ! Refurb to correct standard on day 1 Get management team in place early Speak to L.A. early Keep up to date with rules & regs

10 Landlords Training Day – July 2010 Rick Walton – 07717 210690 training@walton-investments.com Questions & Answers Thank you for your time.


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