Investment Strategies: HMOs & Serviced Accommodation

Why HMOs and Serviced Accommodation?

At Pozytyvnye Properties, we specialize in Houses in Multiple Occupation (HMOs) and Serviced Accommodation (SA) because these strategies offer higher returns, lower risk, and stronger demand compared to traditional buy-to-let properties.

Understanding these investment strategies can help you maximize your profits while minimizing operational risks. Here’s why they are among the most lucrative property investment options in the UK.

Serviced Accommodation (SA)

What is Serviced Accommodation?

Serviced Accommodation (SA) refers to short-term rental properties offered on a nightly or weekly basis. Unlike standard rentals, SA properties are fully furnished and provide a hotel-like experience, catering to business travelers, tourists, and short-term residents.

Why Invest in Serviced Accommodation?

✔ Higher Profit Margins – SA properties can generate 2-3 times the revenue of a standard buy-to-let property by charging per night instead of per month. ✔ Flexible Rental Options – You can switch between short-term lets and long-term rentals depending on market conditions. ✔ Growing Market Demand – With the rise of remote work, corporate stays, and digital nomad culture, short-term lets are more popular than ever. ✔ Tax Benefits – Many SA properties qualify as Furnished Holiday Lets (FHL), offering tax relief advantages that traditional buy-to-let properties do not.

Serviced Accommodation in Reading

Reading is a prime location for SA investments due to:

• A thriving business district attracting corporate travelers and contractors.

• High hotel prices increasing demand for affordable short-term rentals.

• Proximity to London, Heathrow Airport, and key transport hubs, making it a hotspot for visitors.

Houses in Multiple Occupation (HMOs)

What is an HMO?

A House in Multiple Occupation (HMO) is a property rented out to three or more unrelated tenants who share facilities like a kitchen and bathroom. This model allows investors to generate multiple income streams from a single property, significantly boosting rental yields.

Why Invest in HMOs?

✔ Higher Rental Yields – Compared to standard buy-to-let properties, HMOs generate significantly higher returns. Instead of renting to one tenant, you rent to multiple tenants, increasing cash flow. ✔ Consistent Demand – The UK rental market has a growing demand for affordable shared housing, particularly among young professionals, students, and key workers. ✔ Risk Diversification – Even if one tenant moves out, the property still generates income from the remaining tenants. ✔ Tax Efficiency – HMOs can offer tax benefits depending on structuring, as well as potential exemptions from Section 24 mortgage relief restrictions.

HMO Investment in Reading

Reading is an ideal location for HMO investments due to:

• A large student population attending Reading University.

• A growing workforce in tech, finance, and business sectors.

• Excellent transport links to London and other major cities, making it attractive for commuters.

• High demand for affordable, quality rental properties.