At Foot Forward Property Investments, we have over 34 years of HMO experience developing and then managing HMO properties. We are also HMO investors ourselves, and based on what we see locally, HMOs both net yield wise and cashflow wise far outperform single buy to lets in our area.
However, HMOs are not “easy money”. They can outperform, but only when the common drawbacks are properly managed. Below, for every typical HMO negative, you will see how Foot Forward’s fully managed HMO approach is designed to solve it in real life. We also explain why DIY, self-managed HMOs regularly go wrong, and what serious investors do differently.
Why DIY, self-managed HMOs often end up a disaster
A self-managed single let can be relatively straightforward. A self-managed HMO is a different operating model.
DIY HMOs often run into trouble because the investor underestimates how many systems need to run well at the same time. When even one area slips, the knock-on effect can be rapid:
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Compliance gaps can lead to restrictions on occupancy, fines, or expensive remedial work.
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Slow maintenance becomes property damage, tenant complaints, and reputation issues that make rooms harder to let.
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Weak tenant management leads to disputes, antisocial behaviour, churn, and more voids.
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Inconsistent marketing and onboarding causes longer room gaps and unstable cashflow.
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Poor cost control turns a high-gross-yield HMO into an underperforming asset on net returns.
The end result is usually the same: the investor becomes the on-call manager, the property’s condition drifts, and the “higher yield” gets eaten away by stress, costs, and avoidable mistakes.
How Foot Forward solves it (fully managed):
Our fully managed HMOs exist to remove the biggest DIY failure points. We run HMOs with a professional structure so the property does not depend on the investor’s spare time, speed of response, or trial-and-error learning. That is how performance is protected, and why many investors choose a fully managed model.
1) “HMOs have more moving parts, more tenants, more issues”
The concern:
More tenants means more communication, more coordination, and more opportunities for small issues to become big distractions.
How Foot Forward solves it (fully managed):
We treat HMO management as a system, not a reactive task list. Clear house rules, strong tenant communication, and structured issue handling reduce friction and keep the household stable. The goal is a calm, professionally run living environment that supports reliable income.
2) “HMOs have more maintenance and faster wear and tear”
The concern:
More occupants usually means heavier usage of kitchens, bathrooms, appliances, and communal areas. Maintenance can be more frequent, and delays can quickly spiral.
How Foot Forward solves it (fully managed):
We manage HMOs proactively. That means durable setup choices, regular oversight, and faster response so minor faults do not become expensive damage. This protects the building, protects tenant satisfaction, and protects net yield.
3) “HMOs can have higher costs because bills are often included”
The concern:
Bills-included can help occupancy and rent levels, but introduces variable costs and exposure to price rises.
How Foot Forward solves it (fully managed):
We approach HMOs with net performance as the core metric. Bills are budgeted for realistically and managed as part of the operating model. When investors focus only on gross yield, they get surprised. We focus on building stable net returns.
4) “HMOs can have more voids because people move more often”
The concern:
Room lets can have higher churn than a family single let. Frequent changeovers can create admin and short gaps in income.
How Foot Forward solves it (fully managed):
We keep occupancy strong through consistent marketing, tenant screening, and a smooth onboarding process. We also manage the household properly because good management reduces churn. Even when a room is vacant, the income impact is often partial rather than total, which can support cashflow resilience.
5) “HMOs are more complex legally and can require licensing”
The concern:
Licensing and standards can be stricter than investors expect. Mistakes can be expensive, and “I didn’t know” is not a defence.
How Foot Forward solves it (fully managed):
Compliance is foundational to our model. We focus on correct setup and professional ongoing management so the property is operated to appropriate standards. This reduces unpleasant surprises, protects occupancy levels, and lowers the risk of costly enforcement issues.
6) “Tenant issues can be more common in HMOs”
The concern:
Shared living can cause disputes around cleanliness, noise, guests, and communal areas. Poor handling damages retention and the property’s reputation.
How Foot Forward solves it (fully managed):
We manage the household as a household. Clear expectations, firm but fair issue resolution, and consistent oversight maintain a stable environment. This protects tenant quality, reduces churn, and supports stronger performance.
7) “HMOs can be harder to sell and may have a narrower buyer pool”
The concern:
Single lets can appeal to a broader buyer market, including owner-occupiers. HMOs tend to be investor-focused and valued more on income.
How Foot Forward solves it (fully managed):
We protect the investment story by running HMOs professionally with consistent performance and a well-presented asset. A compliant, well-managed property is far more attractive to investor buyers than one held together by DIY management and inconsistent records.
8) “HMOs can be stressful if you are not local or not hands-on”
The concern:
HMOs can become overwhelming if you are managing from a distance or juggling a demanding job. Problems do not wait for you to be free.
How Foot Forward solves it (fully managed):
Our fully managed model is built for investors who want the upside of strong HMO performance without becoming the on-call property manager. We handle the operational burden so you can benefit from a professionally run asset.
So, do HMOs outperform buy to lets?
In our local area, and in our experience as developers, managers, and investors, HMOs commonly outperform single buy to lets on net yield and cashflow when they are run properly.
The key point is this: HMOs are not automatically better. Well-managed HMOs tend to outperform. DIY, self-managed HMOs are where we often see investors lose money, time, and sleep.
The difference is execution, and execution is systems.
Explore Foot Forward HMOs for sale
If you are considering an HMO investment and want a property that is set up and operated properly from day one, you can view our current listings here: www.footforwardproperties.co.uk/hmo-for-sale
A quick decision checklist
If you are choosing between an HMO and a single buy to let, ask:
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Do I want higher income, and am I willing to accept higher operational complexity?
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Is tenant demand for room lets proven in my target area?
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Have I modelled true net returns, including bills, maintenance, and management?
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Do I have a management solution that prevents problems, not just reacts to them?