Skip to main content
Yolist
Yolist

HMO Calculator

Calculate Houses in Multiple Occupation profitability — gross yield, net yield, return on equity, and break-even room rent for 2024/25.

HMO Profitability Calculator

Houses in Multiple Occupation — gross yield, net yield, ROE and break-even rent 2024/25

Property

3–10 lettable rooms

Typical 8–15% — time rooms are unoccupied

Finance

Loan-to-value — HMO lenders typically lend up to 75%

Running costs

Typical £500–£1,500 depending on council

Typical 10–15% for HMO management

Electric, gas, broadband — typical £60–£100/room

Typical 10% — repairs, compliance

HMO specialist insurance — typical £800–£1,500

Enter 0 if tenants pay their own council tax

HMO planning tips

  1. Mandatory HMO licence: Required for 5+ people from 2+ households. Apply to your local authority — fees typically £500–£1,500 and must be renewed every 5 years.
  2. Article 4 Directions: Many councils restrict new HMOs through Article 4, requiring full planning permission for C3→C4 conversion. Check before buying.
  3. Yield uplift: HMO yields are typically 2–3× higher than standard BTL but require significantly more management and compliance overhead.
  4. Selective licensing: Some areas require ALL private rented properties to be licensed, not just HMOs. Check your local council's licensing register.
  5. Fire safety: Budget for interconnected smoke alarms, fire doors, emergency lighting, and annual fire risk assessments — non-compliance can mean fines up to £30,000.

HMO vs standard BTL — typical yields (2024)

StrategyTypical gross yieldManagement intensity
Standard BTL (single let)4–7%Low
HMO (3–4 rooms)8–12%Medium–High
HMO (5–8 rooms)10–15%High
Student HMO8–14%Seasonal/High