A high yielding, guaranteed rent, end to end sourcing company.

What do Home Made Houses do?

We remove almost every headache a typical House of Multiple Occupancy (HMO) property investor has including voids, bills, maintenance, management, demand, finding a property, refurbishment, speaking with tenants and dealing with agents.

Which in turn provides an increased time freedom and a guaranteed predictable income for the HMO property investor. That’s right – HMO guaranteed rent. We manage to pull this off by partnering with charities, housing associations and councils who desperately need good quality housing for vulnerable tenants.

What are the benefits to working with Home Made Houses?

Guaranteed HMO rents

Meaning no chasing late payments or tenant evictions

Sourcing

Saving you £1000s viewing, negotiating and travelling to different locations

Strong relationships

Over time we have built strong relationships saving you years of coffees, meetings and Skype calls

No HMO management

No empty rooms without a reason why and no slow time period to fill rooms with no reason why

No council tax

No risk of your HMO rooms being taxed individually as councils change their ruling

No voids

No empty rooms. You still get paid even if the room is empty meaning you have a predictable income and yield

Social cause

Be a landlord who benefits financially whilst providing homes for the people who need it the most

No maintenance

Your annual profit is not wiped out with repairs

No HMO bills (even broadband)

You don’t need to worry about tenants leaving windows open with the heating on that leads to escalating energy costs

No HMO licence

Because you are supporting vulnerable tenants, the HMO standards are still required but no licence saves you thousands across the life of your property

Who is this for?
Anyone who is looking for predictable income property investment with very little time commitment. Typically people who prefer our model:
  • Have inherited money
  • Can release money from a SASS
  • Experience low occupancy in their private HMO’s
  • Want to get a higher than inflation return
  • Want a very low risk
  • Are busy living life and in a career
Ultimately people that want the returns that property provides without the headache of a property business.
Who is this NOT for?

Someone who wants to drive hours to view property, find their own deals, spend 6 months+ negotiation discounts, build relationships with estate agents, run marketing campaigns, take calls from leads, find letting agents, manage tenants, deal with voids and chase late payment of rent.

If you are a hands on property business owner, this isn’t for you.

What does the model look like?
Guaranteed rent examples – based on a 5 bed HMO rented at £55 per person per week
Purchase Price£100,000£90,000£80,000
Gross rent£14,376£14,376£14,376
Yield14%16%18%
Typically, you need £40K – £55K to purchase one deal. Here is an example of a typical breakdown:
Refurb£25,000
Deposit*£20,000
Sourcing fee**£4,500
Typical buying costs£2,000
Total capital required£51,500
*Not required if buying with cash**Includes project management fee
How does this compare to the banks?
Typical high street bank
(annual savings rate)
1-2%
Home Made Houses
(annual yield)
15%
How does our guaranteed rent HMO compare to a private HMO*?
Typical HMO in the North WestTypical HMO in the MidlandsOur guaranteed rent HMO
Market value£90,000£130,000£95,000
Expected gross rent£18,060£24,696£14,376
Expected yield20%19%15%
Actual gross rent£9,781£15,123£14,736
Actual yield11%12%15%
(*Figures represent an example of a 5 bed HMO at full occupancy in the private rental market)
Something often overlooked with private HMOs is the annual occupancy rate
Due to the nature of voids (rooms being empty in a HMO), this will affect your annual occupancy rate, reducing your yield and return on investment. The table below represents this:
Occupancy100%
(5 beds full)
80%
(4 beds full)
60%
(3 beds full)
Purchase price£100,000£100,000£100,000
Gross rent£18,060£14,448£10,836
True yield18%14%11%
Choose the package which is right for you

If you are looking for guaranteed rents, no voids and a predictable income. Then let’s get you started with either of these packages:

END TO END PACKAGE

Full end-to-end process
Find property which meets council criteria
Project & refurb management
(additional fees apply)
Guaranteed rent contract

£4,500
This package is subject to an annual facilitation fee of 5%. See FAQ

Get your first investment.
JOINT VENTURE PACKAGE

Only applicable if buying 3 houses at once
Requires qualification
70/30% cashflow split (70% to investor)
No property find fee
‘Project & refurb management
(additional fees apply)
Guaranteed rent contact

£1,500
This package is subject to an annual facilitation fee of 2.5%. See FAQ

Get your first investment.
About Home Made Houses
A team lead by Harminder Toor:

With the mission of investing in UK property. Specifically, in the charity sector helping the following tenants:

  • Asylum seekers
  • War veterans
  • Refugees
  • Disabled
  • Homelessness
  • & Children who have had a difficult start in life

We take the long-term view of providing homes for the community, which allows vulnerable people to get themselves back on their feet and re-integrated into society.

Properties we purchase are renovated to the Government’s decent homes standard, conforming to all current UK regulations.

Ultimately, we are not just investors looking for cash, but actually providing homes for some of the people who need it the most.

It is this, which allows investors with savings, inheritance, bonuses, sale of a business, company profits, SASS and sale of other assets to invest for a greater return on their capital and knowledge that their capital is going to a social conscious cause.

Frequently asked questions
Finding a property which meets the council’s requirements and securing the guarantee rent contract is valued at £4,500 which is on part with being sourced a regular private HMO. In addition, if you require Project & Refurb management this is an additional £1,500.
As a business, to ensure we cover costs and benefit from finding a property, continue the trusted relationship with councils and secure a guarantee rent HMO contract. A percentage of cash flow from 3 properties becomes financially viable for us and the investor, who would otherwise pay 3x end-to-end package fees. Typically this would be someone buying the properties with cash to maximise the cashflow. This is optional and some investors opt for the end-to-end package.
We suggest you use our build team who have had their refurb finish approved by councils. Once a property gets accepted by the council, we need to ensure that we get the refurb completed to a specific standard before 5 months is up, in order for the property to obtain a guaranteed rent contract. After 5 months we run the risk of the property no longer being needed by the council.
Once you say yes to a deal you pay 25% upfront as a reservation fee. The outstanding balance is paid on exchange of the property.
Yes some clients prefer to immediately pay us a reservation fee which means the first property that gets approved is shown to them. This is completely optional. And the reservation fee is fully refundable.
Yes we can recommend a finance broker and solicitor but please ensure you do your own due diligence. The advantage of anyone we recommend is, they are aware of the property strategy.
Simply because the housing associations, charities and other niche organisations are exempt from requiring a license because they serve vulnerable tenants.

The buying process is the same as any other property. We do the hard work behind the scenes in:

– Finding the property
– Having the property accepted by the council
– Getting an offer accepted to maximise your return
– Advising you to start the buying process
– We are there throughout the buying process to answer any questions
– Refurb starts
– Council sign off the property
– Contract is issued
– You are paid your rent directly

Typically the guarantee rent contracts are from 3-5 years allowing for rent rises at the contract renewal stage.

Downsides are risks we must ensure we are aware of and do what we can to mitigate (not eliminate). The downsides include the following:

From the moment the property is accepted by the council, we have 5-6 months (depending on council) to have the property purchased, refurbished and handed over to them. After that we run the risk of them not needing that property in that area. Prior to the 5-6 months, they must take the property on.

We buy based on council demand, therefore we don’t buy on location. We try to batch investors houses in certain locations, but the reality is you may have one in Liverpool, one in Sheffield and one in Hull because this is where the council needs it at the time. This is of course irrelevant in the sense that your return is guaranteed. It is worth noting that we do not buy in areas that face racial tension, discrimination and extremely low employement. These areas put the tenants at risk and most of the time the council do not allow us to buy in these areas also.

Other downsides which can occur are those which are similarly applicable to any property investment. Interest rates, market changes, economic changes, regulation changes, property damage,

These are the typical downsides that we face and we work incredibly hard to mitigate against them.

Due to the sensitive nature of the tenant types we do not broadcast our service. This site acts as the first point of information answering most of our clients questions, but the client at this stage has the intention to buy property, rather than a curious person browsing facebook and the web.

To keep costs down for our clients we don’t do direct marketing. As we offer a niche property strategy which is attractive, there is very little need to advertise directly. Recommendations also mean a pre qualification of clients around their understanding of the sensitivity around vulnerable tenants.

This is charged annually in advance to cover the costs of our communication with all current and future councils, charities and other niche organisations. It is calculated as 5% of the gross rent for property 1. Thereafter all other properties you own with us are calculated at 2.5% of gross rent. It ensures you have minimal communication as our team takes care of the day to day. As a bonus, clients who pay an annual facilitation fee (AFF) get sent the details of a new property before a new client.

Due to the sensitivity of the tenant types, we advise all clients not to shout about it on social media. We understand many of our clients may want to raise their profile or use these properties as leverage to raise finance. That is do-able, but being conscious not to give away too much detail including charity names, tenant types, exact location of property.

Finally, although we cannot rush any decisions, it is important that when a property that meets your criteria is presented to you that a prompt decision is made.

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HOME MADE HOUSES LIMITED 2019