HMO Properties to Avoid Buying: A Guide for Smart Investors
June 24, 2025
Investing in Houses in Multiple Occupation (HMOs) can be a lucrative strategy, but only if you know what to look for — and what to avoid. At Foot Forward Develop, we’ve seen countless investors make the same costly mistakes when selecting HMO properties. In this article, we share insider insights on which HMO properties you should steer clear of and why choosing the right type of property makes all the difference.
1. Avoid HMO Properties That Aren’t Fully Ensuite
From our experience, any HMO property without fully ensuite rooms is a red flag. Today’s tenants expect privacy, convenience, and comfort. Shared bathrooms not only reduce the desirability of your property but can also lead to higher turnover rates and management issues. Fully ensuite rooms consistently attract better tenants, command higher rents, and contribute to a smoother operation overall.
2. Say No to HMOs Over 7 Bedrooms
While it might be tempting to think that more rooms equal more profit, HMOs with more than 7 bedrooms often come with significant regulatory headaches. Planning restrictions, licensing complications, and fire safety requirements become exponentially more complex. In our experience, properties with 5-6 ensuite rooms strike the ideal balance between profitability and manageability. Anything over that increases risk and operational strain. Similarly, 4-bedroom HMOs tend to be less desirable to tenants and often do not generate strong returns compared to slightly larger properties.
3. Steer Clear of “Bargain” Properties
If a property seems too cheap to be true, it probably is. Many low-cost HMO properties come with hidden problems: non-compliance with planning or licensing regulations, insufficient room sizes, outdated fire safety measures, or structural issues. These so-called “deals” can quickly become expensive mistakes. Always question why a property is priced significantly below market value.
Why Choose Foot Forward Develop?
At Foot Forward Develop, we specialise in delivering high-quality, fully compliant HMO properties that are built for long-term success. Every property we develop is:
- Fully ensuite
- Properly licensed with local councils
- Designed with compliance in mind (planning, fire safety, and HMO regulations)
- Equipped with modern amenities
- Located in high-demand areas
- Built to meet and exceed HMO minimum room size requirements
We don’t cut corners, and we don’t chase short-term profits. Our properties are built to provide lasting value to investors and exceptional living spaces for tenants.
Final Thoughts
Avoiding the wrong HMO properties is just as important as selecting the right ones. Don’t fall into the trap of buying cheap, oversized, or non-ensuite HMOs. Instead, invest wisely in properties that are fully compliant, strategically located, and designed for today’s rental market.
Want to learn more about high-performing HMO investments? Contact our team today and discover how we can help you build a profitable and hassle-free HMO portfolio.