The HMO Deal Calculator: Room Rates, Voids and Real Profit

What an HMO actually earns after bills, voids and management

This book teaches you to work out what a specific HMO will actually earn after bills, voids, management and every other cost. It explains why gross yield misleads and which figures decide a deal: net monthly profit, return on the cash you invest and profit per room, with the finance cost sitting beneath all three. You will learn where to find room rates, comparables, local rules and running costs for free, how to move from gross potential rent to honest income by subtracting voids room by room, and what a room rate really includes. The cost chapter covers bills, council tax, management, maintenance, insurance, licensing, furniture, the mortgage and a reserve. Each deal is then tested against an empty room, a rate rise, higher bills, a refurbishment overrun and a difficult tenant, before a complete worked example runs the method from purchase to profit. It ends with the legal questions a calculator cannot answer. Next in this series: “HMO Licensing, Article 4 and Fire Safety Without the Fear”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.