Top Mistakes Landlords Make in HMO Management

Managing a House in Multiple Occupation (HMO) can be a highly rewarding investment strategy for landlords, particularly in cities like Exeter where demand from students and young professionals is consistently strong. However, HMO management also comes with unique challenges. Many landlords fall into common traps that reduce rental yields, increase tenant turnover, or even put them at risk of legal penalties. In this article, we’ll explore the top mistakes landlords make when managing HMOs and how to avoid them.

Mistake 1: Ignoring Licensing and Legal Requirements

One of the most serious errors a landlord can make is failing to comply with local licensing laws. In Exeter, HMOs with five or more tenants forming more than one household require a mandatory HMO licence. Landlords must also comply with safety standards, including fire safety, gas and electrical checks, and minimum room size requirements.

The risk: Non-compliance can lead to hefty fines, legal action, and reputational damage.

The solution: Stay up to date with Exeter City Council regulations or partner with a professional HMO management company that ensures your property is always compliant.

Mistake 2: Poor Tenant Selection

Filling rooms quickly without carefully vetting tenants often leads to conflict, property damage, and late rent payments. In an HMO, where multiple tenants share common spaces, one problematic tenant can cause issues for the entire household.

The risk: Higher turnover rates and negative tenant experiences.

The solution: Screen tenants thoroughly by checking references, employment status, and rental history. Aim to create balanced households where tenants’ lifestyles and expectations align.

Mistake 3: Neglecting Maintenance

HMOs experience more wear and tear compared to single lets. Shared kitchens, bathrooms, and communal areas are prone to faster deterioration. Some landlords delay repairs to save money, but this often results in larger, costlier problems later.

The risk: Reduced property value, higher repair costs, and dissatisfied tenants.

The solution: Conduct regular inspections and schedule preventative maintenance. Address repairs promptly to protect your investment and keep tenants happy.

Mistake 4: Inadequate Communication

Managing multiple tenants means handling different personalities, needs, and concerns. Landlords who fail to maintain clear and consistent communication often face tenant dissatisfaction and increased disputes.

The risk: High tenant turnover and a negative reputation.

The solution: Establish open lines of communication. Be responsive to tenant queries and set clear expectations from the start of each tenancy.

Mistake 5: Trying to Manage Everything Alone

Running an HMO is significantly more time-consuming than a single let. From compliance and tenant management to rent collection and maintenance, many landlords underestimate the workload involved.

The risk: Burnout, missed legal obligations, and lower profitability.

The solution: Consider partnering with a professional HMO management company. Experts like Gil Rooms provide full-service management, ensuring compliance, reliable rent collection, and happy tenants.

Conclusion

While HMOs in Exeter present excellent investment opportunities, they also require careful management. Landlords who overlook compliance, tenant selection, or maintenance risk losing money and damaging their reputation. By avoiding these common mistakes and working with experienced HMO managers, landlords can protect their investment and enjoy strong, consistent returns.