HMO Calculator UK

Calculate HMO profitability room-by-room

Property Price (£)

Number of Rooms

Rent Per Room (£/month)

Monthly Mortgage (£)

Annual Running Costs

Council Tax

Utilities (if incl.)

Broadband

Cleaning

Management Fee %

Frequently Asked Questions

Is an HMO more profitable than standard BTL?

HMOs typically generate 2-3x the income of a standard BTL on a per-room basis. However, they require more management, have higher running costs, and require licensing. Net yields of 8-12% are common.

What licence do I need for an HMO?

Mandatory HMO licence required for 5+ tenants forming 2+ households. Many councils also license 3-4 person HMOs. Requirements include fire safety, adequate kitchen/bathroom facilities, and regular inspections.

How many rooms do I need for an HMO?

There's no minimum room count for HMO classification, but licensing typically starts at 3+ occupants. Most successful HMOs have 4-6 rooms for optimal income-to-management ratio.

What is the average HMO yield in the UK?

HMO yields typically range from 8-15% gross, 5-10% net. Student areas (Manchester, Leeds, Sheffield) often achieve higher yields. Factor in higher insurance, utilities, and management costs.

What are the main HMO running costs?

Key costs: mortgage, buildings insurance (£300-800/yr), landlord insurance, utilities (if included), council tax (25% discount usually), broadband, cleaning (communal), maintenance reserve (1% property value), and management fees (8-12%).

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