COMBINING FRANCHISING WITH SPECIALIST PROPERTY INVESTMENT

In recent years, the HMO (Houses of Multiple Occupation) market has proven extremely profitable. The team at Platinum Property Partners share their expertise on this ever-growing sector

Investing in HMOs has stood out as the most profitable specialist buy-to-let strategy in recent years, with the asset class outperforming single-tenancy rental properties by 40%.

This type of investment typically generates more than three times as much rental income as single-tenancy buy-to-let property.

By effectively and tastefully maximising the number of lettable rooms in a single property and renting them individually, landlords can achieve average gross yields of 15%. The additional rental income generated, can ensure improved profit margins and provide a sufficient buffer against fluctuating costs, including tax and interest rate rises, therefore reducing risk.

This is where Platinum Property Partners property expertise comes in, specialising solely in high quality HMOs for professionals and key workers, helping franchise partners to build their own low risk HMO property portfolios that generate a significant income for life.

When building an HMO portfolio, Platinum Property Partners have a number of expert top tips and best practice guidelines  for building a profitable and compliant HMO portfolio.

These include:

• Location and property – deciding where to invest can be just as important as the type of property purchased.
• Rules and regulations – complying with all planning, licensing and building control legislation is crucial or hefty fines are faced.
• Conversion and refurbishment – focusing on the practical elements first and aesthetic second, remembering that target tenants may have differing tastes.
• Tenancy and property management – creating harmonious households is about finding the right tenants and managing them effectively.

Unlike other franchises, Platinum partners own the assets from day one, so the income continues to flood in long after any franchise commitments have expired. By utilising existing finances, investors can build a low-risk property investment business underpinned by a portfolio of appreciating assets, which in years to come will be a solid pension fund and a valuable legacy.

The Platinum Property Partners business model has proven success for a network of more than 340 franchise partners to date, earning an average of £50,000 to £150,000 net annual income from their portfolios, which combined are worth £300 million.

Their ‘Combining Franchising with Property – 7 Steps to success in 2018’ guide details some further top tips and best practices for building a profitable and compliant HMO portfolio.

To read more, visit platinumpropertypartners.co.uk