HMO yield calculator
An HMO's gross yield is the year's room rent divided by everything it cost to buy and convert. Its net yield takes off the running costs a shared house carries, such as bills, management, voids and maintenance. Enter your own figures below.
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This is arithmetic on your inputs, not financial advice. It leaves out mortgage costs, tax and capital growth. Speak to a qualified adviser before you buy.
Gross and net yield explained
Gross yield divides the year's rent, after any empty periods, by the total money put in: the purchase price, the conversion works and the buying costs. It is useful for comparing houses quickly but ignores running costs.
Net yield takes off the costs a shared house carries. In a room-let HMO the owner usually pays the council tax and the bills, and needs to budget for management, voids and maintenance. This calculator leaves out mortgage costs and tax, which depend on your circumstances.
Before relying on any figures, check that the house can be licensed and has the planning status it needs. Our feasibility appraisals and appraisal guide explain how.
Want the numbers checked on a real house?
We appraise room count, planning route, licensing and build cost before you commit.