Dealing with a large HMO portoflio
We have a look here at what we were able to achieve for this landlord and the results are outstanding
- Properties: 11 (59 units)
- Value: £18 millions
- Onboarded: 2021
Overview
A portfolio of Houses of Multiple Occupation (HMOs) across London
The challenges
From self managed to professionally managed: The client’s portfolio was self-managed, dispersed across London, and lacked proper documentation and compliance procedures for a portfolio of its scale.
Lack of visibility Because the landlord was responsible for the bills and the agents had not provided adequate oversight, there was no consistency across the portfolio in terms of utilities and service providers. This lack of standardisation created inefficiencies, increased costs, and made the portfolio difficult to manage effectively.
Rent performance: The portfolio was rent below market value, no inspections were carried out regularly and the overall service was not deemed good enough for higher rent as many tenants attested.
Our Solution
Service consolidation
A significant effort was put to restructure the entire operations starting from the service providers where across the entire portfolio were reduced to 6 in total with a cost efficiency of 18% compared to before. Maintenance was consolidated and from 28 contractors previously used was reduced to 8 which led to an additional 25% reduction of overall cost.
Rent optimisation
With enhanced services, regular inspections, and the addition of cleaning across all properties, rents would need to increase. Tenants were willing to accept a 15% uplift to reflect these improvements.
Portfolio dashboard
A unified view was finally obtained and the landlord for the first time could see how profitable the portfolio really was. Moreover, through our proprietary dashboard it was clear that those assets and those rents were outperforming all similar properties in those areas. Overall, what was needed is merely tight and careful asset management for a reliable cash flow outperforming the market.
Free Online House Valuation
Try our totally free property valuation for your house, flat or bungalow
- Instant results: we give you a result instantly!
- No Commitment: no credit card, no payment, use it as often as you like
- 100% online: no need to call, no need for an appointment and works 24/7.
- But a personalised approach: if you need further help, our team is here for you
