How do you calculate the rental yield for a UK HMO property, especially concerning different room rents and varying void periods, to assess its profitability against a standard single-let?
Quick Answer
HMO rental yield is calculated by summing annual room rents, subtracting void losses and operating costs, then dividing by property value. This differs from single-let calculations due to multiple income streams and higher management needs, often resulting in higher gross but more complex net yields.
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Calculate HMO rental yield for UK properties. Learn to account for varied room rents, void periods, and higher operating costs from April 2025.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
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