How We Helped a New Landlord Develop 3 HMO Properties in 2 Years

September 24, 2026

Helping experienced landlords expand an existing portfolio is something we do regularly, but there is something particularly satisfying about helping somebody enter HMO investment for the first time and showing them exactly how an end-to-end development and management service should work.

One recent example involved a professional couple living in London who had never invested in property before. Both had demanding careers, both had built up sufficient liquid capital to invest, and both had already reached the conclusion that developing HMO properties in London made very little sense for what they were trying to achieve.

The initial purchase prices were significantly higher, development costs were considerable and the amount of capital required to build a meaningful portfolio was far greater than they wanted to commit. After researching different areas of the UK, they became increasingly interested in South Yorkshire and began looking for an experienced HMO development company that could handle the entire process for them.

That research eventually brought them to Foot Forward Property Investments.

They did not want another job

One of the most important points from our early conversations was that neither investor wanted to become a hands-on landlord.

They already had demanding employment. Spending evenings speaking to contractors, arranging compliance visits, dealing with licensing applications, checking utility bills, handling tenant issues or chasing maintenance contractors was not remotely appealing.

Developing the properties themselves was therefore never really an option.

They wanted to invest in HMOs, but they wanted the investment to fit around their existing lives rather than completely take them over. That meant finding one company capable of handling acquisition, design, development, compliance, licensing, tenant finding and long-term management under one roof.

After reviewing our website, track record and operating model, they chose our fully managed HMO investment service.

With more than 34 years of experience in HMO development and management, more than 450 HMO properties developed and an in-house management operation dealing with more than 600 tenants each month, our model gave them the structure they were looking for.

They were also particularly fond of our Price Lock Promise. Once an investment figure is agreed, the investor knows the cost of the development rather than being exposed to a refurbishment budget that keeps increasing every time material or labour costs change.

Due diligence came before the property purchase

Before any property was purchased, we provided detailed due diligence documentation and worked through the questions the couple had about the investment model, location, development process, management and eventual refinancing strategy.

They had already carried out their own research into different parts of the country and had decided that South Yorkshire suited the type of HMO portfolio they wanted to build.

Our job was then to identify suitable residential properties in locations where we already had evidence of professional tenant demand.

We do not operate a “build it and hope they come” model. The property, location, room sizes, parking, local employment base, transport connections and achievable rents all need to make sense before we proceed.

For their first two investments, we identified two residential shells in areas where our existing management data demonstrated consistent demand.

Our in-house architects and planning team then designed layouts that worked commercially while still producing properties tenants would actually want to live in. Both developments followed the type of layout we have successfully delivered many times before: five bedrooms, five bathrooms, with rear extensions creating proper communal kitchen and living areas.

Buying residential shells created another advantage

The investors purchased the original residential properties through solicitors in the normal way.

One of the reasons they preferred developing HMOs rather than simply purchasing completed investment properties was the potential Stamp Duty Land Tax advantage created by buying the residential shell first and carrying out the refurbishment separately afterwards.

Rather than paying a completed HMO price from day one, they purchased the underlying property and then developed it into the finished investment.

Once legal completion had taken place and they owned the properties, our refurbishment team began work.

Both projects involved substantial back-to-brick refurbishment rather than cosmetic conversion. We stripped the properties back and rebuilt them around the requirements of professional HMO occupation, including the necessary electrical, plumbing, heating, fire safety, insulation, soundproofing, bedroom, bathroom and communal-space works.

Planning requirements and any necessary change-of-use matters were handled through our own team as part of the same process.

This multi-expert approach is one of the main differences between using a direct HMO developer and attempting to coordinate separate sourcing agents, architects, builders, planners, compliance consultants and managing agents yourself.

Development was only half of the service

Once both properties were completed, they were handed directly to our in-house lettings and management operation.

This was another major reason the investors chose Foot Forward.

They did not want somebody to develop a HMO, hand them the keys and then leave them searching for a local letting agent who may or may not understand specialist HMO management.

We only manage the HMO properties that we develop.

That gives our management team a detailed understanding of the building from the moment the first tenant moves in. They know how it was developed, how the systems work, what compliance requirements apply and exactly how the property should be operated.

Our in-house team handles tenant management, licensing, inspections, maintenance, emergency call-outs, cleanliness inspections, utility payments, bill checking, gardening and the wider day-to-day responsibilities involved in operating a professional HMO.

For investors living in London with demanding careers, that was exactly what they wanted. They owned the properties, received the income and retained control of the assets without becoming responsible for managing five individual tenants in each building.

We waited before refinancing

Once the first two HMOs were completed and tenanted, we deliberately allowed them to operate for around three months before beginning the refinancing process.

Our approach to leverage is deliberately conservative.

We do not promote unrealistic “all money out” strategies, nor do we build investment projections around aggressive valuations and excessive borrowing. The couple shared that view.

We arranged commercial refinancing based on the completed HMO properties and used sensible leverage rather than trying to extract every possible pound of equity.

The objective was straightforward: create strong, income-producing assets first, establish that they were operating correctly, then use refinancing to release part of the capital for the next acquisition.

That refinancing allowed the investors to repeat the process.

HMO number three

With capital released from their first two completed properties, we were able to identify another suitable residential shell and begin the same development process again.

The investors did not need to create a new team, find another architect, search for another contractor or locate another management company.

The same acquisition, planning, development and management structure that had delivered the first two HMOs was simply repeated for the third.

Within two years of making their first HMO investment, a couple who had previously never owned an investment property had built a portfolio of three professionally developed and fully managed HMO properties.

More importantly, they had done it without needing to leave their employment or become full-time landlords.

Why they chose an established HMO developer

Property investment attracts new companies constantly.

Websites can be created quickly. Investment projections can be produced even faster. It is much harder to create decades of operating history, hundreds of completed developments and a management company that deals with hundreds of tenants every month.

The couple wanted evidence that the company developing their portfolio had actually done this before.

Our 34-year track record in HMO development and management gave them that confidence. So did the fact that we manage more than 600 tenants every month and have now developed more than £135 million of property investments across our wider development operation.

They also liked the accountability created by having one company responsible for the process from beginning to end.

There was no sourcing company blaming the builder, no builder blaming the architect and no developer disappearing once the property was completed.

Our team sourced the residential shells, planned the layouts, developed the properties, completed the HMO works, dealt with the relevant planning and compliance requirements, licensed and tenanted the properties, managed them and then supported the refinancing process.

That is what a genuinely hands-off HMO investment service should look like.

Building an HMO portfolio without managing one

Many of the investors we work with are in a similar position.

They have built careers or businesses that have generated capital, but they have no interest in creating another demanding job for themselves by personally managing property developments and tenants.

Our job is to remove that workload.

The investor owns the property. Our team handles the work required to turn an ordinary residential house into a properly developed, compliant and professionally managed HMO investment.

For this particular couple, the result was three HMO properties developed within two years from a standing start, using the first two investments and sensible refinancing to help fund the third.

No unrealistic leverage. No inflated promises. No need to build their own team of contractors and managing agents.

Just a repeatable HMO development model backed by more than 34 years of experience.

You can view our current fully managed HMO investment opportunities and learn more about how our end-to-end service works at www.footforwardproperties.co.uk/hmo-for-sale.