What changes should I make to a terraced house for a successful HMO. In the target area its overwhelmingly DWP LHA tenants. Funnily enough my house doesn't need a licence (5 beds but only 2 floors) but I want to kit it out with the appropriate standards.
Apart from the obvious smoke alarms, fire doors etc. The house I'm upgrading has a gas fire in each room. Presumably that goes.
An experienced landlord said don't get a key-meter or any kind of pay as you go charging as the tenants allways argue about payment, and the electric frequently gets cut off, leaving the tenants using candles or other bizarro behaviour.
So I cough up for Council Tax, TV License, Gas, Lecky and Water.. then aportion that on a weekly basis to their room rate. £55 for room, then about £12pppw.
Does that get written into the AST as £67 per week, to stop them not paying?
So I'd get £55 from the local council, then hope the rest will be paid.
Should I insist on guarantors and deposits?
Any tips experienced landlords can give me on this kind of tenancy? I've had plenty of upmarket AST's on expensive London property but this is my first foray into the world of HB.....