A living area or a lounge makes up an important area of a house. It is an area designated to relax, rest and socialize. Nowadays, we see lounges as an important area in hotels, restaurants, and even airports. It allows guests and residents to sit for a while and relax.
It is an important question whether to have a communal lounge or not have it in your HMO property. By definition, HMO is still home to people with multiple occupations. Ideally, a communal lounge can make your HMO appear more attractive and lucrative to tenants. However, many investors do not provide HMO with lounges, but managing to provide a lounge to your HMO can have multiple benefits.
Benefits Of Providing A Communal Lounge
Counting on the benefits of having a communal lounge for your HMO property will help in a more rational approach to look into this matter. Here are some key benefits linked with a communal lounge.
1. Low Tenants’ Turnover
Providing a lounge area in your HMO unit will eventually let you have very low tenant turnover. A very low tenant turnover means that they tend to stay longer with you, and it saves you from the cost of finding new tenants more often.
A house with no social area is unable to attract tenants as compared with one having a communal lounge. This is because a communal lounge is added to the tenants’ bedroom, which allows them to interact with others and even relax a bit.
2. Wider Tenant Group
As discussed earlier, there are many properties available that do not offer a living area or a lounge, but it limits the tenant’s market for such properties. By adding a communal lounge to your property, you may successfully aim to attract a wider tenant group.
On the one hand, it allows attracting a more professional and wider group of tenants; it also lowers the tenant turnover. Getting more professional and long-staying tenants is a win-win for landlords and investors. It saves from the additional cost of finding and approaching new tenants and making new agreements.
3. Peaceful Environment To Tenants
As a landlord, a concern about facilities and even the lifestyle offered at your property may help in aiming tenants to stick and stay longer with you. A communal lounge at your unit may allow tenants to get peace of mind. There are a number of facilities that you can aim to provide in the communal lounge. The ultimate goal is satisfied and happy tenants.
After a hectic work routine, people go home and relax in several ways. As a landlord, if you manage to provide such a homely environment for your tenants, then it may help you earn the best returns. A lounge may allow tenants to spend some time watching TV, listening to music and, even reading books ultimately release stress.
4. Competitive Advantage
Time has changed, and so has a lifestyle. Landlords, especially HMO landlords, must compete to manage and sustain long-term benefits out of this business. Providing a communal lounge may help your HMO property with a competitive edge over the others.
It is important to follow the new market trends and update amenities to get a competitive edge. Providing your tenants with a shared space will provide an additional option to tenants. It helps attract more tenants yet get good rents.
How Big The Lounge Should Be?
It is totally dependent on your property space and the facilities you aim to provide. It should fulfill the minimum requirements of the communal lounge and, at the same time, provide enough space to your tenants.
A lounge furnished with a coffee table, chairs, sofa and TV, shall also provide enough space to tenants along with these furnishings. The aim is to ensure comfort, ease, and a joyful experience for tenants at your HMO property.
Putting It Altogether
There are HMO properties with and without a communal lounge. As a landlord providing a lounge in your space may help with a competitive advantage. It is even important for those operating in a highly competitive market. Providing a communal lounge also helps with lower tenants’ turnover.
HMO landlords may aim to attract a wider tenant group with a communal lounge. It provides a better environment for tenants. A communal lounge with enough space and required furnishings is well enough to serve tenants.