2020 was a very turbulent year for HMO landlords and investors
2020’s bumpy year started with the onset of Covid, followed by March’s lockdown, which lasted over 3 months. The property market re-opened on 29.06.2020 and the pent-up demand resulted in a very busy summer. September brought the usual slow-down, with October being quieter than in previous years.
How did Edinburgh HMO properties fare throughout the year?
HMO rents in Edinburgh 2020
Rents for HMO properties have been quite steady. However, voids for less desirable properties (small bedrooms, no lounge, imperfect location, tired décor or furniture) increased. There is a significant difference in rents achieved per bedroom between properties with communal space and properties without. Edinburgh HMO landlords and investors should estimate whether turning a living room into a bedroom is the right strategy (less rent per bedroom, less interest, longer voids, higher wear and tear). We have decided to share average 2020 rents per bedroom in the most typical (3 and 4 bedroom) HMOs managed by the Edinburgh Letting Centre.
Rents per bedroom in most typical HMOs
- 3 bedrooms with lounge: £536 per bedroom.
- 3 bedrooms, no lounge: £440 per bedroom.
- 4 bedrooms with lounge: £600 per bedroom.
- 4 bedrooms, no lounge £512 per bedroom.
HMO inspections resume
October 2020 brought a return of HMO inspections in Edinburgh, initially for new licence applications (i.e. not for renewals). This is very good news for landlords and investors who applied for an HMO licence in early 2020 and have been waiting for HMO, fire service and building standards inspection to obtain the licence.
Inventories, tenancy agreements and landlord agreements can be signed online via Signable (electronic signature platform). Tenant referencing is carried out by a third-party referencing provider, Hazelton Mount ford.