HMO Yield Calculator UK
Room lets look great on gross yield. See the true net yield once bills, voids, management and licensing are in, plus your monthly cashflow and profit per room.
Stamp duty? Use the SDLT calculator.
HMOs rarely sit at 100% all year. 90-95% is a realistic planning figure.
Typical for HMOs
Gross yield
14.4%
True net yield
8.0%
Costs drag your yield down by 6.4%.
Monthly cashflow
£966
Profit / room / mo
£161
Cashflow and yields are before tax.
Mandatory HMO licence required
England: a mandatory licence applies at 5+ occupants from 2+ households. Many councils also run additional or selective licensing for smaller HMOs, and Article 4 areas need planning permission. Always check with your local authority.
Not financial advice. For educational purposes only. HMO costs, room rents and licensing rules vary widely by area. Verify figures and local licensing with your council, broker and accountant before committing.
HMOs are a net-yield game. A 14% gross yield can become a single-digit net once you add landlord-paid bills, 12%+ management, voids between tenancies, and licensing. The number that pays your mortgage is the net yield and the monthly cashflow, not the gross.