Implementing a series of significant enhancements is essential to obtaining a full, comprehensive commercial valuation of your House in Multiple Occupation (HMO) property. These improvements can greatly increase the property’s appeal and functionality, positively influencing its market value.

Key changes to consider include:

• Adding Extra Bathrooms: This helps comfortably accommodate more tenants. -Installing
• Additional Kitchens: This enhances convenience for residents.
• Creating Separate Shower Rooms: This improves privacy and reduces waiting times.
• Enhancing the communal areas: This can substantially improve the living experience for residents, making the property more attractive to potential tenants and investors alike.

These modifications benefit current occupants and position your HMO for a more favourable commercial HMO valuation in the competitive property market.

When your property is not considered for a Commercial HMO Valuation

Adding locks to bedrooms and other rooms can significantly influence the property’s valuation. By making these and other minor changes, the property would still be classified as a residential house instead of a commercial HMO. This is due to the ease with which the property can be converted back to a residential status, thereby making it not a commercial HMO and not subject to a higher valuation.

For the Broker

When discussing the property with your client, it’s important to understand the extent of both completed changes and those that are planned. If the changes that have been completed are minor, you should manage the client’s expectations by explaining that it may not be possible for the property to receive a higher commercial valuation.

In Summary

Significant enhancements are crucial to achieving a higher commercial valuation for your HMO. It’s important to note that minor changes, like adding locks to bedroom doors, would not qualify the property for a commercial HMO valuation. The property’s ineligibility for a higher valuation is due to its potential for easy conversion back to residential status.