For Investors
HMO Yield Calculator
Work out the gross and net rental yield on an HMO before you buy. We build and manage HMOs ourselves, so these are the numbers we run on every deal.
Interactive calculator coming soon
We're building a live HMO yield calculator. In the meantime, tell us the numbers and we'll run a real appraisal on your property, no guesswork.
Get a free HMO appraisalHow to calculate HMO yield
Gross yield is your annual rent divided by the total you put into the property, as a percentage. For an HMO, annual rent is the rent per room, times the number of rooms, times twelve. Total investment is the purchase price plus the refurb or conversion cost.
Net yield is the more honest number. It takes the same annual rent, subtracts the real running costs (bills, maintenance, management, void periods, insurance and compliance), then divides by the total investment. Net yield is what actually lands in your account.
What is a good HMO yield?
HMOs typically produce a higher yield than single lets because you are collecting rent room by room. In our part of Staffordshire, a well-run HMO usually outperforms a standard buy-to-let on the same street. The right number depends on the room count, the local rent, and how tightly the running costs are managed, which is exactly what good management protects.
Want the real numbers on a specific property?
A calculator gives you a guide. A proper appraisal accounts for the actual layout, licensing, Article 4, refurb spec and local demand. That is what we do before we take on or develop an HMO. Read about our Source, Design, Build, Let service and HMO investment support, or just get in touch for a straight appraisal.