Understanding the benefits for investors and the change in the way people are choosing to live
What is a HMO?
I get asked this question a lot! HMO stands for House of Multiple Occupancy, which is also known as a Rooming House, Lodging House, Boarding House, Share House or Student Accommodation in Australia. However, the traditional image of HMOs is of dark, dingy, and poor quality accommodation. But, in reality, HMOs can be bright, spacious, and modern micro apartments that come equipped with an ensuite bathroom, kitchenette, TV, sofa, and comfortable furniture. This gives residents the option to stay in their room and have privacy, or they can socialise with other people in the house in the common areas that have a shared kitchen, laundry, dining, and living area.
Who Lives in a HMO?
The HMO appeals to a diverse demographic. At Living Rooms, our multi-award-winning property management business, we have housemates ranging from 18 to 74 years old. Young professionals, individuals relocating for work, those in transitional life stages, and even 55+ single females, who are the fastest-growing cohort of homeless in the country, find HMOs ideal for their flexibility and communal environment. The HMO also caters to the increasing segment of the population who prioritize experiences and social connection over owning large houses that make them feel lonely.
What are the benefits of a HMO?
The HMO creates a true WIN-WIN-WIN outcome because it provides affordable, convenient, modern, and safe accommodation for tenants while offering a higher yield and positive cash flow to investors along with capital growth.
Who lives in a HMO and why?
Since starting to invest in HMOs in 2015, we have housed well over 1000 people in clean, safe, modern, and affordable accommodation. Our tenants come from various sectors in various industries, ranging from baristas, retail workers, traders, and FIFO to doctors, nurses, and engineers. Due to the volume of people we have helped, we have been collecting valuable data that not only helps refine the HMO layouts and furniture inclusions but also helps us understand why people rent these rooms. Apart from being convenient and affordable, people also choose to live in HMOs so they can feel part of a community of people they can socialize with at any time in the common areas or enjoy their own privacy in their lockable room.
What makes the HMO Property Co different?
What makes the HMO Property Co different from any other providers in the market? Apart from having a Proven Track Record of almost a decade providing HMOs to the Perth marketplace, we are a fully integrated business that can support you through the full process from finance application to project management of construction and then property management with our multi-award-winning property management business. We want to provide you with the best service possible so that you become a client for life.
