Landlords are increasingly tailoring houses in multiple occupation (HMOs) to appeal to clearly defined tenant groups.
Research from Paragon Bank has found that 92% of landlords actively prepare or present their HMOs to attract a particular tenant type, with students the most commonly targeted group (36%), followed by white collar or professional workers (25%) and young single tenants (19%).
This targeted approach is influencing both how landlords upgrade existing properties and the types of HMOs they look to acquire.
A quarter (25%) now prioritise ensuite bedrooms when identifying investment opportunities, while 19% favour locations close to work hubs or transport links.
Larger bedroom sizes (19%) and improved energy efficiency (23%) also feature prominently.
Investment activity reflects this positioning, with 62% of landlords having improved an HMO within the last six months and a further 24% in the past year.
Tenant expectations are continuing to shape property specifications, with demand increasing for faster broadband (40%), ensuite facilities (39%) and inclusive bills (33%).
Alongside tailoring properties to specific tenant groups, landlords are also investing to enhance overall standards, with 58% undertaking upgrades beyond minimum legal requirements and half carrying out regulatory or compliance-focused improvements.
Louisa Sedgwick, Paragon Bank Managing Director of Mortgages, says: “These findings show how the HMO market is continuing to evolve, with landlords taking a more targeted and strategic approach to their investments.
Many are now clearly identifying the tenant groups they want to attract and shaping their properties accordingly, which is influencing decisions around layout, location and the amenities being offered.”
This article is taken from Landlord Today