HMO Property investing
Explore a selection of our completed projects from recent years, each showcasing strong value uplift, efficient execution, and long-term performance
#77 Project
5 bed ensuite HMO | Aug 2024
Project Overview:
Converted a 3-bedroom, 2-reception Victorian terrace into a 5-bed, 5-ensuite HMO, achieving a 62.5% value uplift.
Acquisition & Strategy:
Sourced through a local estate agent, the property received planning permission for the HMO conversion prior to purchase completion, ensuring a smooth and profitable process.
Execution & Insight:
Tenant eviction can be time-intensive, so securing a deal with strong potential returns is essential to make the project worthwhile.
Outcome:
A fully let, high-performing HMO that demonstrates how strategic acquisition, careful planning, and execution can deliver significant value and sustainable cash flow.
#14 Project
5 bed ensuite HMO | Feb 2023
Project Overview:
Converted a 3-bedroom, 2-reception Victorian terrace into a 5-bed, 5-ensuite HMO, achieving a 48.8% value uplift.
Acquisition & Strategy:
Purchased as a probate property in an Article 4 area through a local estate agent. Planning permission for the HMO conversion was secured prior to completion, ensuring a smooth and efficient process.
Negotiation & Execution:
Confidence, experience, and credible evidence were key to gaining the agent’s trust, which enabled a favourable purchase price and seamless project delivery.
Key Insight:
Probate certificate processes can take up to 12 weeks, requiring patience and proactive management.
Outcome:
A high-performing, fully let HMO, demonstrating how strategic planning and expert execution turn underutilised properties into profitable investments.
#2 Project
6 bed ensuite HMO | Jan 2021
Project Overview:
Transformed a 3-bedroom, 2-reception end-terrace probate property into a 6-bed, 6-ensuite HMO, achieving a 59.6% value uplift.
Acquisition & Strategy:
Acquired at auction in an Article 4 area, with planning permission secured before purchase completion, ensuring the conversion could proceed smoothly and efficiently.
Execution & Legal Navigation:
Swift navigation of legal processes was critical, particularly over festive seasons when solicitor availability can be limited. Having an experienced, responsive solicitor was essential to keep the project on track.
Key Insight:
For heavy refurbishments, selecting the right bridging lender is crucial to align financing with your project timelines and goals.
Outcome:
A fully let, high-performing HMO demonstrating how strategic planning, expert execution, and the right professional team can transform underutilised properties into profitable investments.
#89 Project
5 bed 3 ensuite HMO | Apr 2020
Project Overview:
Converted a 2-bedroom, 2-reception Victorian terrace into a 5-bed, 3-ensuite HMO, achieving a 76.5% value uplift.
Acquisition & Strategy:
Purchased through an estate agent during the early uncertainty of the first lockdown, when market forecasts predicted a 16.9% decline. This rare opportunity was secured at 25% below market value, with planning permission successfully obtained prior to conversion.
Execution & Financial Outcome:
The project generated an infinite return, producing ongoing cash flow without requiring additional capital. Strategic planning and careful timing were key to capitalising on this market opportunity.
Key Insight:
Refinancing timelines can be longer than usual during unusual market conditions, so patience and proactive management are essential.
Outcome:
A high-performing HMO that demonstrates how expert acquisition, planning, and execution can turn market uncertainty into profitable, sustainable investments.
#57 Project
6 bed 4 ensuite HMO | Jan 2020
Project Overview:
Converted a 2-bedroom, 2-reception Victorian terrace into a 6-bed, 4-ensuite HMO, achieving a 73.3% value uplift.
Acquisition & Strategy:
Acquired at auction in an Article 4 area, with planning permission secured thanks to a skilled planning consultant and architect. Their expertise ensured an optimal design and a smooth approval process.
Execution & Planning Insight:
Documentation from previous projects was leveraged to build confidence with the local council, enabling a successful and efficient planning outcome.
Key Insight:
An experienced planning consultant is a vital member of your power team, helping navigate regulations and secure approvals efficiently.
Outcome:
A fully let, high-performing HMO that showcases how strategic planning, expert execution, and a strong professional team turn underutilised properties into profitable investments.
#8 Project
4 bed ensuite HMO | Nov 2019
Project Overview:
Our first HMO development converted a 3-bedroom, 1-reception townhouse into a 4-bed ensuite HMO for five occupants, achieving a 38.5% value uplift.
Acquisition & Strategy:
Completed just before Article 4 regulations were enforced by the local council, this project allowed us to gain early experience in HMO conversions.
Execution & Team Building:
This venture marked the beginning of forming our power team, particularly identifying reliable local contractors capable of delivering high-quality results on schedule.
Key Insight:
Three-story townhouses can be challenging for HMO conversions due to limited layout flexibility and room size constraints, so careful planning is essential.
Outcome:
A successful HMO conversion that laid the foundation for Zheng Developments’ strategic approach, team-building, and scalable HMO investment model.