High Turnover for HMO Properties – 5 Ways to Reduce Impact

Houses in Multiple Occupation (HMOs) often experience higher turnover compared to traditional rental properties, mainly due to the nature of shared living arrangements.To mitigate the impact of frequent tenant turnover on profits, consider implementing the following strategies.

Understand the Reasons for High Tenant Turnover

Factors contributing to higher turnover in HMOs include:

  • Differences in lifestyles, habits, or personal preferences can lead tenants to seek alternative housing options more frequently
  • HMO tenants, such as students or young professionals, may be more transient by nature - life changes, such as completing studies or job relocations, can prompt frequent moves
  • A lack of autonomy over shared living spaces, such as kitchens or bathrooms, can contribute to individuals seeking properties where they have more control over the entire living space
A Streamlined Onboarding and Move-Out Process

Although a certain level of turnover may be unavoidable, it can still be time-consuming and costly during the onboarding of new tenants.

One solution is to develop a streamlined onboarding process that includes clear documentation, standardised tenancy agreements, and an efficient move-in checklist. Having a well-organised process in place, such as a property management tool and end-of-tenancy app, can reduce the time and effort required for each turnover, ensuring a smoother transition for all parties.

Longer Tenancy Terms and Tenancy Renewal Incentives

While students may be less likely to sign a longer tenancy due to course schedules or uncertainty around their future after academic studies, some HMO properties can still retain tenants for extended periods of time.

Stretching a tenancy or encouraging renewal from 1 year to just 2 or 3 years can significantly reduce administrative burden when it comes to finding new tenants and putting tenancy agreements in place.

If possible, encourage longer tenancy terms by offering incentives for tenancy renewals. This could include upgrading the property with new appliances or upgrades, or even providing a rent discount or other perks for tenants who choose to renew their tenancy.

Improve Tenant Communication

Poor communication can contribute to tenant dissatisfaction and turnover. Instead, try establishing open lines of communication with tenants. Regularly check in with them to address any concerns or issues promptly as well as consider ways to foster a positive manager-tenant relationship that may make individuals feel settled and at-home, despite sharing housing with several other tenants.

Conduct Exit Interviews

As well as utilising our free end-of-tenancy app to assess the condition of the property and individual rooms at the end of tenancy, why not inquire with tenants about their reasons for moving out?

Understanding these reasons can be crucial for improving property management and provide insights into areas for improvement. Addressing concerns raised by outgoing tenants can contribute to better retention strategies in the future and reduce turnover, in addition to fewer conflicts or disputes.

Panos, 08 December 2023
High Turnover for HMO Properties – 5 Ways to Reduce Impact

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