HMO
MODEL
At Envision Investment Group, we specialise in HMO investments, one of the most powerful strategies for generating strong rental yields and long-term growth.
We operate across four distinct HMO investment models, each designed to suit different short- and long-term strategies. Whatever your goals, we’ll help you identify the right fit and support you every step of the way.
HMO TENANT TYPES
PROFESSIONALS
Typically working adults looking for high-quality shared accommodation with modern amenities and good transport links. While many are aged 20–35, this tenant type is not limited by age, and can attract professionals of all ages seeking convenience and affordability.
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STUDENTS
Full-time university or college students, often renting in groups. These tenants usually sign academic-year contracts and provide reliable demand in cities or towns with strong university presence.
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SUPPORTED LIVING / SOCIAL HOUSING
These tenants are often vulnerable individuals or those requiring additional support. They are often placed by local authorities, housing associations, charities, or care providers, who also take responsibility for their ongoing management and support.
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CONTRACTORS / SHORT-TERM WORKERS
Professionals such as NHS staff, engineers, or consultants working temporarily in the area. They often value flexibility, clean accommodation, and all-inclusive rents, making them ideal for higher-end or flexible-let HMOs.
HMO CONVERSION
An HMO (House in Multiple Occupation) conversion involves transforming a standard residential property into a shared home for three or more unrelated tenants, each with private bedrooms and shared communal facilities.
This is typically achieved through strategic internal reconfiguration, loft conversions and single-storey extensions to maximise space and functionality. In non-restricted areas, HMOs (up to 6 people) can typically be created under permitted development. Larger HMOs or those in restricted areas (Article 4 Direction) require a full planning application.
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The property must also comply with all relevant safety, space, and licensing regulations. Envision Investment Group offers a complete, hands-off service for HMO conversions, from sourcing, acquisition and planning, to full refurbishment and compliance. We handle everything, so you don’t have to.
This model is perfect for those wanting to recycle larger amounts of capital due to its uplift in value once renovated, as well as a high cash-flowing asset.
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PROS
✔ High cashflow for HMOs
✔ Substantial uplift in property value
✔ Scale quicker
✔ Own the asset/Capital appreciation
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CONS
✖ Higher refurbishment costs
✖ Longer duration for project completion
✖ Full planning may be required depending on Area and size
EXISTING HMO
An existing HMO involves purchasing a property that has already been converted and configured as a House in Multiple Occupation. These properties typically have the correct layout, fire safety measures, and licensing in place, allowing investors to start generating income with minimal delay.
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While light refurbishments such as redecorating, furnishing, or minor compliance updates may still be required, the heavy lifting of conversion is already complete. In some cases, there may also be scope to increase the rental income and capital value by reconfiguring layouts or adding additional rooms, subject to planning and licensing.
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Envision Investment Group can source these ready-to-go HMO opportunities, providing a practical route for investors to access income-producing assets with less complexity and quicker turnaround.
PROS
✔ Medium-High cashflow for HMOs
✔ Light or no refurbishment work needed
✔ Lower upfront risk
✔ Own the asset/Capital appreciation
CONS
✖ Higher upfront costs
✖ Lower potential for an uplift in value short term
✖ Slower to scale than HMO conversions
RENT-TO-RENT HMO
Rent to rent is a powerful cash flow model that allows investors to generate income from properties they don’t own. By securing a long-term lease from a landlord, the investor takes control of the property, converts it into a compliant HMO (if not already), and rents it out by the room to multiple tenants.
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The difference between the rent paid to the landlord and the income received from tenants (minus operational costs) becomes the investor’s profit. This model offers a fast and cost-effective route into property without the need for large capital outlays or mortgages, making it especially attractive for new investors or investors with smaller funds. When done properly with full compliance, quality management, and strong tenant demand, Rent-to-Rent can deliver consistent and scalable returns.
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At Envision Investment Group, we can either source Rent-to-Rent HMO opportunities for you or provide a full service that includes sourcing, setup, and ongoing property management, making your investment completely hands-off if you wish.
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PROS
✔ Medium-High cashflow for HMOs
✔ Little capital needed
✔ Great for first time investors
✔ Scale quicker
CONS
✖ Don’t own the asset/No capital appreciation
✖ No mortgage leverage
✖ Limited exit strategy
SOCIAL HOUSING HMO
Social Housing is a impactful investment model that involves long-term agreements and partnerships with local councils, housing associations, or supported living providers to house individuals in need.
This model offers investors a completely hands-off experience, with no void periods, as the rent is guaranteed regardless of occupancy. In most cases, the provider also takes responsibility for the majority of maintenance and repairs, significantly reducing ongoing costs. Backed by government-funded schemes, Social Housing HMOs offer a stable, low-risk alternative to traditional HMO’s, delivering consistent income while helping meet the growing demand for quality housing in the social sector.
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At Envision Investment Group, we have experience working with trusted providers in this space and actively source these opportunities for our clients, ensuring they benefit from secure, socially impactful, and fully managed investments.
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PROS
✔ Medium-High cashflow for HMOs
✔ No operational costs
✔ Majority of maintenance and repair costs covered
✔ Guaranteed rent
CONS
✖ Limited flexibility to increase rent
✖ Limited direct tenant control
✖ Fewer lending products available
HMO STAGING SERVICE
Did you know that professionally staged HMOs often rent faster and achieve higher rental values?
At Envision Investment Group, we offer staging as an additional service for landlords and investors looking to enhance the appeal of their properties.
Alongside this, we provide professional photography to ensure your property is showcased at its absolute best - helping you attract quality tenants quickly and maximise returns in a competitive rental market. For more information, please email info@envisioninvestmentgroup.co.uk.
While HMOs remain our core focus at Envision Investment Group, our experience and network extend across a range of property investment strategies. If you're exploring alternative routes, we’re happy to advise.
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​Get in touch at info@envisioninvestmentgroup.co.uk or click the link below.