If you’ve been exploring property investing, you’ve probably come across the big debate: Single lets or HMOs – what’s better for returns? As someone who’s transitioned from the building trade into the HMO space, I’ve had the chance to weigh both, and the answer isn’t just about numbers. It’s about your time, goals, and strategy.
Let’s break it down:
What is a Single Let?
A single let is your typical buy-to-let property. One tenant or one family pays rent monthly. Simple to manage. Fewer headaches. But usually… lower returns.
Pros:
- Easier to manage
- Lower tenant turnover
- Simpler to finance
Cons:
- Lower cash flow
- More vulnerable to rent voids (one tenant = no income if vacant)
What is an HMO?
An HMO (House in Multiple Occupation) is where 3 or more unrelated people live in one property and share facilities like kitchens or bathrooms.
Pros:
- Higher rental income (5 tenants paying £600 = £3,000/month vs £1,200 for a single let)
- Spreads risk – one tenant leaving doesn’t stop your income
- Potential to force appreciation via refurbishments
Cons:
- Stricter regulations & licensing
- More management required (or the need for a letting agent)
- Higher initial setup cost (but worth it if done right)
The Real Return on Investment
Let’s say you buy a standard 3-bed property:
- As a Single Let: Rent = £1,200/month. After costs, maybe £300–£400 cash flow.
- As an HMO (converted to 5-bed): Rent = £3,000/month. After higher costs, around £1,000–£1,500+ cash flow is realistic.
So even after factoring in management, licensing, and maintenance, HMOs can deliver 2–4x the net income of a single let.
So Which is Better?
- If you want a hands-off, low-risk entry, start with a single let.
- If you want to accelerate your income and grow your portfolio quicker, HMOs are worth your time and effort – especially when paired with smart refurb strategies and investor finance.
I’m living proof that you can make the shift – even while working full time. My background in the building trade gave me a head start, but what really matters is the mindset to learn, grow, and take action.
Let’s go, let’s grow.
