Updating post from Reddit.
As the title says, given that a 2 bedroom, 1 bathroom flat won't be classed as HMO if I rent it out by rooms, would that be possible? Any risks I'm not considering? Currently renting out the full flat to one tenant. But been thinking if renting out by individual rooms would be possible? This is in Scotland.
The first thing to consider will be how much you'll piss off the existing tenant, so I assume you're happy with them leaving.
It might be later on when the current tenant leaves, but was just thinking if this approach would work - so HMO type returns without the hassle?
U could probs get more money for renting out both bedroom individually. But you would need to provide all the furniture e.g beds.
When is the current tenant leaving? I think you would have to wait for them to leave, then rent the rooms out individually.
Currently have a property manager who takes care of everything related to the tenant. I suppose it would just be same paperwork times twice?
Well, if you have the property tenanted currently, then they have full legal protection, and I would assume the rights to the full property. Hence, you can't just move somebody in without amending their current agreement, which they have the full right to fight especially if they are in an AST.
Agree, only thinking of doing it after the current tenant has left.
If the existing tenancy gives the existing tenant the whole flat you can’t take back a room unilaterally. You can negotiate with the existing tenant but they don’t have to agree.
If the flat is going to be vacant, you could rent out room by room. You need to be clear to the first new occupant that someone else will be coming. A female might not like a strange man coming as the 2nd tenant.
You probably have to let furnished
Agree regarding furnishing the flat. Could it be fairly straightforward to get the first tenant, assuming current tenant has left, and just ask him or her to post a roommate wanted ad or interview candidates for the second room?
That depends on the type of tenancy you want. If you want a long lasting tenancy or continuing new tenants with periods of under capacity?
Basically you're likely to make more money from two tenants but expect them to move on regularly and not take alot of care of the property. If you want a longer tenancy and for the tenant to take care of the property you're gonna want a single tenant.
What's the rate difference around your way? Around here the whole flat would rent for a similar price as two letting rooms, with lower costs since tenants will probably stay a lot longer.