As a specialist HMO Management Agency, we see lots and lots of HMOs and, when we come across one where the design and “value add” are both spot on AND it makes the team go “wow” with excitement as we go to market – it makes us sit up and take note!
Well, this week, we have experienced exactly this phenomenon, as we prepare to market the brand new and gorgeous, Co-Living space, from the Taupo Property Group, for whom we manage in Bristol. These guys do not do things by halves and their latest, 18 bed HMO, is an absolute cracker! Ben was on site this week, as pictures and marketing materials were being finalised and, when we gave the team a sneak peek, at our weekly meeting, they were suitably impressed – this instruction has got the whole team animated and exhilarated! It has also got us thinking about HMOs and how things have changed, for the better, in this sector of the market.
Boutique-style HMOs are a relatively new concept that has emerged in the property market and we have some fabulous players in this sector, right here in the city of Bristol. These properties are designed to cater to the growing demand for high-quality, shared living accommodation. Bristol is unusual and, unlike many other parts of the country, tenants moving to the city often live in HMOs out of choice and not out of necessity. Unlike traditional HMOs, which are often associated with substandard living conditions and overcrowding, boutique-style HMOs are designed to provide a unique and high-quality shared living experience.
The design of boutique-style HMOs is one of the key features that sets them apart from traditional HMOs. These properties are typically renovated to a high standard, with modern, stylish interiors and high-quality furnishings, with great attention given to shared, communal spaces and luxurious furnishings. The aim is to create a comfortable, welcoming space that residents will be proud to call home and want to spend time, together, in.
In addition to the design of the property itself, boutique-style HMOs often offer a range of value-added services to tenants. For example, some properties may offer a cleaning service or access to a gym, cinema or designer workspaces. These services are designed to enhance the living experience for tenants, making it a more convenient and enjoyable space to live in, which engenders a sense of community, fostering social interaction; especially important for working professionals who may be new to an area.
As well as providing benefits for tenants, boutique-style HMOs can also offer advantages for property investors. These properties are often located in prime urban areas, where demand for high-quality accommodation is high. They can provide a stable and profitable investment, particularly for those who are looking for a long-term rental income, which differentiates itself in the market, by nature of its design and impact. Tenant selection is crucial and nuanced here, in order to get the tenant mix right, as the aim is to promote a harmonious community. Spend the time setting them up and then managing them correctly, and you will reap the long-term benefits of a high yielding asset, with large appeal.
However, it is important to note that boutique-style HMOs are not without their challenges. Premium design often requires a higher spend at the outset and knowing what is and what is not a value add here, is nuanced. We have seen many an HMO with overspend, that we know the landlord is never going to see a return on – value added spend is different and, experience and research will play a large part here, so look, listen, ask advice and take note; take the time to find out what works and what doesn’t and always remember not to polarise – as a landlord, you are not going to be living here, the design must always have your future tenants at its heart!
Despite these challenges, boutique-style HMOs offer an exciting opportunity for property investors and tenants alike. By focusing on high-quality design, value-added services, and community, these properties are setting a new standard for HMO living, which is fabulous and a benefit to all concerned. As demand for affordable, high-quality accommodation continues to grow, we can expect to see more and more boutique-style HMOs emerging in cities throughout the UK.
And, last but not least, here are some pics of the Taupo Property Group’s latest offering to the Bristol market – we cannot wait to watch this one fly out of the door and are very proud to be their lettings partner in Bristol – they are progressive landlords and property investors and we really enjoy working shoulder to shoulder with them!
As Landlords and Investors ourselves, we can help and advise on all aspects of your portfolio. If we can help you then give us a call on 0117 440 6789 or email us here together we can make being a landlord simple, passive and stress free!
