Investing In property in edinburgh

With Edinburgh’s bustling student population, owning a house with multiple occupation (HMO) in the capital has consistently been a solid investment proposition. But after two years of pandemic lockdowns and students staying away, is buying an HMO property in the city still a good idea?

In recent months students and visitors have returned, and rental property is in high demand, pushing prices to some of the highest on record. HMOs offer an excellent opportunity to make a higher income than a property rented in its entirety to an individual, couple, or family, but there are other issues to consider. Our team at Clan Gordon, Edinburgh’s leading letting agent, explore the pros and cons…

What Is An HMO?

Any property inhabited by three or more unrelated people who share bathroom or kitchen facilities is classed as an HMO. Separate legislation governs HMOs, which must meet standards set by the local authority responsible for granting a licence for the property once these conditions have been satisfied.

These include rooms meeting minimum space standards and all being an adequate size for a bed, wardrobe, and chest of drawers, adequate bathroom and kitchen facilities being provided for the number of occupants, and the property being secure with solid locks on doors and windows.

The local authority licence lasts for three years, and HMOs require additional safety measures such as self-closing fire doors, more smoke alarms, emergency lighting, and fire extinguishers, as well as the usual gas and electrical safety certificates and legionella risk assessments.

Required Renovations in an HMO

HMOs may require different renovations to a rented family home. Investment must be made in solid, lockable bedroom doors and fire doors.

Many factors influence whether investing in an HMO is a good idea, and our team of property management professionals at Clan Gordon is well-placed to offer expert advice and guidance on property investment – including off-market opportunities available to you.

To find out more, schedule a call and meet with one of our expert advisors.


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