As a HMO investor, it can be difficult attracting tenants especially if you have not offered a HMO to the very competitive market before.
Tungsten MG have put together a list of 3 best ways to approach the task if attracting HMO tenants, which include
applying a step by step proven dressing formula
standing out from the rest
giving tenants what they desire
applying a step by step proven house dressing technique for a HMO
At Tungsten MG we take pride on the finish product of each room in each house that we offer to tenants. During the first project we bought a number of items to dress the house such as white bed spread, colourful bed cushions, faux plants, items to decorate a dinner table, sugar, tea and coffee pots for the kitchen. All these items are for staging the house. They create an environment which allows those looking around the house to envisage themselves living there and calling this home.
As mentioned in my blog on 10th August you need to copy those who have successful staged property and see what items they use and what they do not place in a room. For example at the start Tungsten MG placed rugs into the communal areas but we now no longer provide this. It does not attract or repel tenants yet is a cost saving.
The items stated above we remove from the shared living area and bedrooms as the AST’s are signed and we store them at home in vacuum packed storage bags. This allows us to create a set theme throughout the properties, so you know it is a Tungsten MG HMO by the look plus you only buy the staging pieces once, which keeps cost down.
We have now dressed 25 bedrooms, 5 kitchens and 5 communal living areas so we have found cheaper yet great quality items as we have continued along our journey. We use high street retailers such as Argos, Wilko and poundland plus property specific business such as Fusion Furniture who offer package furniture and will deliver, install and remove all waste within the price. We have also joined LNPG as your membership allows you to get huge discounts, better than you builder at places such as Currys, Magnet and Johnstones.
The first place to start is to research your competition – what do other HMO rooms look like, what do they include in the kitchen and is the finish suitable for the tenant they are trying to attract? You can seek all this information on Spareroom and look at the available rooms, but ensure that you select rooms that you would compete with.
The space needs to grab prospective tenants eyes as the rental market is very competitive. So can you make your advertisement jump out by using brand colours, a specific look or feel? We have opted to use set feature walls and abstract wall art work from the Range to dress our spaces, which tenants comment on – positively. Your end goal is to create an atmosphere in the house that reflects what the business is. If the the property is in poor condition when the tenant moves in, it sets the expectations low but a property that is ready to move in to it sets the tenants expectation high for cleanliness and maintenance.
Research, research, research. This is the only way and best way to ensure that the product you create is wanted and desired by your target audience. If the end product is to high end then you will deter the student resident and to girlie you will deter 50% of the renting market. The need of the tenant will extent to the need of white goods to be included, parking is a must, a shared bathroom is acceptable or shared living space is a deal breaker.
So research, ask your existing tenants, ask letting agents what their tenants desire, and then create the DREAM house that will set the lettings market on fire
Has this helped you feel more comfortable attracting top end tenants to your HMO?
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