When it comes to investing in Houses in Multiple Occupation (HMOs), location is everything. One of the most important factors we consider before purchasing is how well connected the area is – particularly by rail – and what amenities are nearby. Here’s why these two elements matter so much for successful HMO investments.
1. Attracting the Right Tenants
Most HMO tenants are working professionals, students, or key workers. These groups value convenience, and they’re often looking for housing that allows them to commute easily and live close to everyday essentials.
- Proximity to train stations means quicker and more reliable commutes, especially to major cities.
- Access to amenities like supermarkets, cafes, gyms, and healthcare makes day-to-day living much easier for tenants.
If you offer a home that reduces commuting stress and provides easy access to daily necessities, you’re more likely to keep your rooms filled year-round.
2. Lower Voids, Higher Demand
Properties near good rail links and amenities typically benefit from:
- Higher tenant demand, reducing the time your rooms sit empty.
- Greater retention, as tenants tend to stay longer in well-located properties.
- Premium rents, as tenants are willing to pay more for convenience.
This directly improves your monthly cash flow and boosts your overall return on investment.
3. Stronger Capital Growth
Areas close to transport hubs and vibrant town centers often see higher long-term property appreciation. Infrastructure improvements like new railway stations or upgrades to public spaces usually increase local house prices. This means your investment not only produces income but also grows in value over time.
4. Safety and Liveability
Well-connected areas with established amenities often attract local investment and regeneration, resulting in safer and more pleasant environments. These areas typically:
- Have better lighting and public services.
- See more policing and community engagement.
- Attract other residents with stable incomes.
For tenants, that adds to the sense of security and quality of life. For you, it means a more stable investment.
5. Easier Management
If you choose to self-manage or work with local agents, a central location makes inspections, maintenance, and viewings easier to coordinate. Managing an HMO in an accessible area saves time and reduces hassle, especially if you have multiple properties.
Conclusion
When choosing where to invest in an HMO, don’t just look at the property itself – look at the map. A property that’s minutes from a train station and walking distance to shops and services is much more likely to deliver consistent rental income, attract better tenants, and appreciate in value. It’s a simple formula that continues to work, deal after deal.
