It\'s usually a 3/4 bedroom property split in to 4/5 individual rooms. Rooms are almost always offered with bills + council tax included. The gas bills in winter time in a 4 bedroom property can be astronomical, especially when the occupants aren\'t paying for it. 

Case study:

Lets take your average 3 bed semi in an urban area. As a HMO with rooms you can let 3 double rooms and one single room. You may achieve £80 P/W for a double and £70 P/W for the single - a total monthly income (when fully let) of £1343.31. Sounds great doesn\'t it!? However, the landlord must budget for Council tax, Gas, Electricity, Water, Furnishings, in most cases internet and in some cases Sky TV. This is on top of the routine property repairs.

Bear in mind that you would still have all of these costs if only one of your rooms is tenanted meaning you would be running at a considerable loss. If this exact property was to be let out as a family home at the market rent it would achieve £595.00 PCM without the need for the landlord to pay bills or taxes etc. 

Would you consider letting your property out as rooms?Comments or questions about this article? Email blog@ultralets.co.uk