I'm looking at potential HMOs in northern cities like Manchester and Leeds. What rental yield percentage would be considered 'good' for an HMO, accounting for higher running costs and management fees compared to a standard buy-to-let?
Quick Answer
For HMOs in northern cities, a 'good' gross rental yield range to target is typically 12-15% or higher, but net yield after higher operational costs is more important, which might bring it down to 8-10%.
About This Topic
Discover what constitutes a 'good' HMO rental yield in northern UK cities like Manchester and Leeds, accounting for unique HMO costs. Target 12-15% gross yield while focusing on net cash flow after higher management, utility, and maintenance expenses.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
Expert Guidance from Steven Potter
Steven Potter is a UK property investment coach with a £1.5M portfolio and over 5 years of hands-on experience. He has helped over 1,000 students achieve their property investment goals through practical, ethical strategies.
Ready to Take Action?
Get personalised property investment coaching with Steven Potter's Property Freedom Framework.
Learn about the Property Freedom Framework