HMO yield calculator
Net yield on a house in multiple occupation, with the heavier operating costs an HMO actually carries.
8.3% net is modest for an HMO given the extra management and licensing.
Lettable roomsYOU Bedroom count | 5 |
Rent per room per monthEST | £500 |
Gross annual rentEST | £30,000 |
Operating costsASM 35% of gross | −£10,500 |
Net annual incomeEST | £19,500 |
Total cash inEST | −£235,500 |
Net yieldEST | 8.3% |
- Room rate taken from the monthly rent divided by bedrooms unless you set it directly.
- Operating costs assumed at 35% of gross rent — bills, licensing, management and voids are heavier than a single let.
- Assumes Article 4 direction and licensing are already checked. They often are not.
Article 4 directions and HMO licensing are assumed already checked. They frequently are not, and either one can stop the scheme dead after you have bought.
This is one sum out of a whole deal
Inside the app the same engines run against real HM Land Registry sold prices, rank your buyers against the deal, and tell you what to do next — with the workings attached to every figure, exactly as they are here.
The demo runs on invented deals and real postcodes. No account, nothing saved.
Questions
Why are operating costs 35%?
Because an HMO carries bills, licensing, management and voids that a single let does not. Using a single-let cost assumption on an HMO is the most common way these deals are made to look better than they are.
What is an Article 4 direction?
A council removing the permitted-development right to convert a home into a small HMO, so you need planning permission. Check before you offer, not after.