We don't think the traditional HMO model is always the best one
A fully occupied HMO can look very profitable on paper, but headline rent isn't the same as profit. Tenant-find fees, void periods, annual changeovers, redecoration, maintenance, rent arrears and management costs can take a surprisingly large bite out of the return.
We've managed student and professional HMOs for years, so we understand the traditional model very well. We also understand its weaknesses. Where appropriate, we help landlords move away from short-term room-by-room letting towards longer-term arrangements that can provide more reliable income, fewer changeovers, substantially lower costs and much less work. Sometimes the best way to manage an HMO is to change the way it is let.
Already own an HMO? We'll take it from here
You don't need to buy a property through Fox & Fox. We manage existing HMOs of all sizes throughout Bristol and South Gloucestershire and can take over from another managing agent or from landlords who have previously managed their properties themselves.
Our full HMO management service includes:
- Tenant sourcing and referencing
- Tenancy agreements and administration
- Deposit administration
- Rent collection and accounting
- Rent arrears management
- Property inspections
- Repairs and maintenance
- Contractor management
- HMO licence applications and renewals
- Safety and regulatory compliance
- Liaison with Bristol City Council and South Gloucestershire Council
- Tenant disputes and end-of-tenancy management
We also review the performance of the property itself. If we think the existing letting model remains the best option, we'll manage it. If we think there's a better one, we'll tell you.
Sometimes good HMO management means changing the HMO
Most letting agents inherit a six-bedroom HMO and see six rooms to let. We see an investment and start by asking whether the existing letting model is actually the best use of the property.
That means looking at more than the advertised monthly rent. We consider occupancy, voids, tenant-find costs, maintenance, redecoration, arrears, management costs and the amount of work generated by regular tenant changes. A conventional student or professional HMO can produce an attractive gross rent while being considerably less attractive once all those costs are taken into account.
Where the property is suitable, longer-term occupation can change that equation. Rather than replacing tenants every year, it may be possible to find occupiers who stay for years, pay reliably and accept contractual annual rent increases. This can substantially reduce voids, letting costs, redecoration, wear and tear and the amount of management the property requires.
Our objective isn't simply to achieve the highest advertised rent. It is to improve what the property actually earns for its owner.
Case study: A five-bedroom HMO in Fishponds
One of our clients owned a five-bedroom HMO in Fishponds which was being operated in the conventional student market. It was being advertised at £2,750 per month.
We reviewed the property and changed the letting model, securing a longer-term occupier at £3,500 per month. That increased the headline rent by £750 per month, or £9,000 per year - an increase of just over 27%.
More importantly, the new arrangement removed many of the costs that had made the traditional HMO model less attractive. There are no annual tenant-find fees or routine void periods, the tenant pays the utilities, and the greatly reduced turnover means substantially less wear and tear, maintenance and redecoration.
The initial agreement is for two years and is expected to continue for at least ten. Instead of finding a new group of tenants every year and incurring the associated costs each time, the landlord has a longer-term arrangement with a mechanism for annual rent increases.
The lesson from the property wasn't simply that another tenant would pay more rent. It was that the conventional student HMO model wasn't making the best use of the investment.
| Previous model | New model |
| £2,750 pcm | £3,500 pcm |
| Annual tenant changes | Long-term occupation |
| Regular tenant-find costs | No annual tenant-find fee |
| Potential void periods | No routine void periods |
| Frequent redecoration / maintenance | Greatly reduced turnover costs |
| Short letting cycle | Initial 2-year term |
HMO experience that goes back to 2010
Members of our team have been managing HMOs in Bristol since around 2010. Fox & Fox has managed HMOs since the company was established in 2019 and we currently manage approximately 150 rooms across around 30 HMOs and blocks of flats.
That experience includes student and professional HMOs of different sizes, as well as the practical work that comes with them: licensing, inspections, safety and regulatory compliance, maintenance, tenant management and liaison with Bristol City Council and South Gloucestershire Council.
We don't think being large is the same thing as being good at property management. Our focus is on understanding the individual property, dealing with problems properly and making decisions in the interests of the landlord's investment.
What our HMO landlords say
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Thinking of changing HMO managing agent?
If your HMO is already managed by another agent, changing doesn't need to be complicated. Fox & Fox can handle the transfer process, including obtaining the tenancy information, deposit records, compliance documents and other information required to take over the management. We can do the same for landlords who currently manage their HMOs themselves and simply want someone else to take responsibility for the day-to-day work.
A change of management is also a good opportunity to look at the property afresh. We'll review the rents, costs, occupancy and existing letting arrangements rather than automatically reproducing whatever the previous agent was doing.
Sometimes the answer is simply better management. Sometimes the property would benefit from a different letting model. We'll tell you what we think before you make a decision.
HMO Management FAQs
Do Fox & Fox manage existing HMOs?
Yes. We manage existing HMOs of all sizes throughout Bristol and South Gloucestershire. You don't need to have bought the property through Fox & Fox, and we can take over either from another managing agent or directly from a landlord who has previously managed the property.
Do you manage student and professional HMOs?
Yes. We have experience managing both student and professional HMOs. We don't, however, assume that either model is necessarily the best option for every property. Where we think an alternative letting strategy could improve the landlord's return or reduce the costs and work involved, we'll discuss it with you.
Can you take over from my existing letting agent?
Yes. We can handle the transfer process, including obtaining tenancy information, deposit records and compliance documentation, with the aim of making the change as straightforward as possible for both landlord and tenants.
Do you deal with HMO licensing and compliance?
Yes. We deal with HMO licence applications and renewals, inspections and the usual safety and regulatory requirements. We have experience dealing with both Bristol City Council and South Gloucestershire Council.
Do you deal with maintenance?
Yes. Full management includes arranging repairs, dealing with contractors and managing the day-to-day maintenance issues that arise with HMOs.
Do you collect rent and deal with arrears?
Yes. We collect the rent, provide landlord accounting and deal with arrears and other tenancy issues where they arise.
How much does HMO management cost?
Our standard full-management fee is 10%. If we recommend a different letting structure for your property, we'll explain the proposed arrangement and any associated costs before you decide whether to proceed.
Can you increase the profitability of my HMO?
Not every HMO can be improved simply by changing the way it is let. We will review the property's existing rents, costs, occupancy and letting arrangements and tell you where we think there is an opportunity to improve its performance. Sometimes conventional HMO letting remains the right answer; sometimes it doesn't.
Is your HMO working as hard as it should?
If you own an HMO in Bristol or South Gloucestershire, we can review how it is currently being let and managed and give you our view on whether there is an opportunity to improve it. There is no obligation to change agent or letting model simply because you've spoken to us.