HMO Lease Options
As a HMO Lease options specialist one of the benefits of the ‘job’ is the deals that come your way from people outside the area or people less familiar with Lease Options or HMO’s. I was over the moon when I got a call from a contact who had a lead for a 12 bed House of Multiple Occupation (HMO) just around the corner. My contact had mentioned lease options to the owner briefly but left the negotiations to me.
I visited the property – a large former care home and then sat down with the owner to discuss the situation.
We knew we could rent the property out for £4,000-£4,500, I proposed a lease option where we offered to lease it for £1800 a month for up to 6 years with the option to purchase the property for £500,000, which is todays market value. In the end we agreed to lease the property for 3 years with an informal agreement to be given first refusal on the purchase of the property.
The property was fully rented within 9 days, here’s how the deal stacked up for us and over the next 3 years, this HMO Lease Option will net us £54,680 Total Profit after all costs.
You can read more about this HMO Lease Option Deal on our website.
Author : Barry Davies