REJUVENATING THE HMO MARKET WITH PLATINUM PROPERTY PARTNERS

Lisa Stead, Operations Manager of Platinum Property Partners, tells Stephen Penn how their business model can help you deliver your own specialist buy-to-let property portfolio

HOW DID THE BUSINESS START?

Our founder, Steve Bolton, was looking for a business opportunity with long-term earnings potential. He turned to the property market, and after extensive research found a niche where he could really make his mark and designed his HMO (Houses of Multiple Occupation) model. This involves turning 3 or 4-bedroom homes into 5, 6 or more bedrooms; high-quality shared living spaces. After successfully transforming a number of properties - he set up Platinum Property Partners to share real estate expertise with likeminded people.

HOW DOES THE CONCEPT WORK?

We’re the only property franchise in the UK. We offer tailored advice and expertise to our partners, who are serious, not just in securing a return, but in facilitating a lifestyle change, long term financial security alongside enhancing the HMO rental market as a whole. We truly believe in the power of a network. You’ll learn everything you need to know, what mistakes to avoid and how, which properties to buy and where, how to cost-effectively refurbish them as well as obtaining the required planning permission and licensing guided by experts.

WHAT IS THE CORE ETHOS OF THE COMPANY?

Our strapline is ‘Be More, Do More, Have More, Give More’. This runs at the core of everything we do. We offer personal and professional guidance. Our partners in turn, pass on what they have learned to others within the network and look to ‘give back’ through a number of charitable and social ventures.

HOW HAS THE HIGH-END HMO MARKET CHANGED OVER THE PAST 5 YEARS?

There are definitely more investors out there, and the tenants are becoming more sophisticated as they expect much more than just a room for their rent. But the key changes are behind the scenes. The government is now extending the scope of mandatory licensing to bring smaller HMOs within the scheme, a positive move to weed out low standards and poor landlords – but more legislation to understand and comply with. Another potential impact is Section 24 legislation, which restricts the amount of mortgage tax relief to the basic rate - 20%. This could have considerable impact on the bottom-line for landlord profitability in general, however the PPP model continues to thrive with clear successes across the franchise.

WHAT KIND OF RETURNS CAN PEOPLE EXPECT FROM INVESTING IN HMOS?

On average, our partners secure returns on their investment of 15%, with some (typically further north) delivering returns of up to 27%.

ANY TOP TIPS FOR MAXIMISING RETURNS?

There’s no silver bullet to success, but in our experience, we’ve found dedication to customer service can make or break a business. Keep up to speed with legislation and be tax efficient. PPP are proud to be able to ensure our Partners combine all these success factors, with many more, to maximise their returns and ensure the long-term success of their businesses.