House in Multiple Occupation (HMO) properties can be a profitable investment opportunity, with the potential for higher rental yields and a degree of security against vacant periods. However, HMO management presents unique challenges that demand specific knowledge and commitment, particularly around tenant selection, compliance, and maintenance.
In the property investment sphere, landlords often grapple with whether to self-manage their HMO properties or enlist the services of a dedicated HMO property management company. This decision hinges on various factors, including, but not limited to, time availability, expertise in tenant management and HMO regulations, and the scale of the HMO property portfolio.
As a landlord, understanding the advantages and drawbacks of both approaches can help you decide which route aligns best with your business goals, capacity, and personal preferences. Let’s explore these pros and cons.

DIY HMO Management
Choosing to manage your HMO property independently can bring a sense of control and potential cost savings. However, it also demands a significant investment of your time and energy.
Pros of DIY Management
- Cost Savings: By opting for self-management, you might save on the fees a professional HMO management company would charge. This could improve your overall returns, particularly if your profit margins are tight.
- Direct Control: Self-management allows you direct control over all aspects of your property, including tenant selection, rent collection, and maintenance.
- Personal Relationships: Direct management can foster a closer relationship with your tenants, which might lead to better care of the property and longer tenancies.
Cons of DIY Management
- Time Commitment: Managing an HMO property can be time-consuming, especially when dealing with multiple tenants, each with unique needs and queries. This becomes more complex if you own more than one HMO property.
- Regulatory Compliance: Ensuring adherence to HMO regulations, including safety standards, licensing requirements, and local council rules, is crucial. This demands an in-depth understanding of these regulations, and failure to comply can lead to severe penalties.
- Tenant Screening: A crucial aspect of HMO property management is finding suitable tenants. In-depth tenant screening requires experience and time, which may be taxing for a DIY landlord.
Professional HMO Management
Enlisting the services of an experienced HMO management company or HMO letting agents offer several advantages, but it also comes at a cost. However, these services can provide substantial value given the intricate nature of managing HMOs.
Pros of Professional HMO Management
- Expertise: A professional HMO management company brings knowledge and experience to the table, helping ensure your HMO property is managed optimally. They are adept at handling tenant issues, maintaining the property, and navigating complex regulatory frameworks.
- Time Savings: Entrusting your property to a management company can free up a considerable amount of time, allowing you to focus on other aspects of your investment portfolio or simply to enjoy the passive income benefits of property investment.
- Tenant Screening and Retention: HMO letting agents have rigorous tenant screening processes in place to ensure you have reliable and respectful tenants. Their services often lead to lower tenant turnover, ensuring a consistent rental income stream.
- Compliance: A key advantage of professional management is that they keep abreast of the ever-changing legal landscape, ensuring your property remains compliant and reducing your risk of costly fines or penalties.

Cons of Professional HMO Management
- Cost: The most apparent downside of professional management is the cost. Fees can vary and are typically a percentage of the rental income. Understanding these fees upfront is crucial to ensure they fit within your budget and investment strategy.
- Less Control: Engaging a management company means relinquishing some control over your property. While the company will always act in your best interest, you might have a say in only some decisions.
- Communication Gap: While good property management companies prioritize clear communication, there may be instances where information could be communicated more promptly or clearly.
Choosing between professional HMO management and DIY depends on your circumstances, investment strategy, and the time and energy you are willing to commit. If the complex responsibilities associated with HMO property management seem daunting, partnering with a reputable HMO management company like BRH Property can be a game-changing move. With services encompassing everything from tenant screening to full compliance, we offer landlords peace of mind and an opportunity to maximise their return on investment.
For more information on managing HMO properties effectively, feel free to explore our informative guides on topics like tenant screening, comprehensive HMO management, and attracting high-quality tenants.