The Real Costs of Running an HMO in 2026 (Full Breakdown)

How much of your HMO rent do you actually get to keep?

It’s easy to look at the monthly rent, deduct the mortgage and bills, and assume everything left over is profit. But the reality is there are dozens of other costs that can impact the long-term performance of a HMO.

In this episode, I break down the real costs of running a HMO in 2026, covering around 60 different expenses across 12 categories. From voids, reletting and utilities to compliance, maintenance, refinancing, management and tax, I’ll help you understand what really needs to be factored into your numbers.

With costs rising and new legislation introducing additional expenses, accurately appraising your deals has never been more important.

🎯 What You'll Learn

• The hidden costs that can eat into your HMO profits
• How much to allow for voids, arrears and tenant changeovers
• The ongoing costs of utilities, cleaning, gardening and maintenance
• HMO licensing, safety certificates and other compliance costs
• The true cost of financing and refinancing a HMO
• Management, legal, insurance and professional fees you need to consider
• Why you should appraise your HMO over 5, 10 and 15 years, rather than focusing only on day-one returns

Whether you're appraising your next HMO or reviewing the performance of an existing portfolio, this episode will help you build a much more realistic picture of what your HMO is actually costing you, and what you really get to keep.

💻 Resources & Mentions

• Join my Accelerator Programme: If you’d like my direct input on your current or next project, you can watch this video or book a complimentary strategy call with me here.
• The HMO Roadmap: Feeling overwhelmed? Access 400+ tools, templates, and lessons to help you start, scale, and systemise your HMO business - all in one place. Join here.
• The HMO Community: Got questions or need support? Come and connect with 10,000+ investors inside our Free Facebook Group here.
• Social: Follow me on Instagram for daily HMO tips, advice, and behind-the-scenes updates here.