Houses of Multiple Occupation (HMOs) have received much more press coverage in recent years and many investor-landlords now seem to want to own such properties due to the cash flow which can be generated if they are set up and managed properly. During a period with limited prospects of capital appreciation the HMO 'income' strategy is an obvious one, however the big returns, particularly substantial cash flows, are usually left for larger HMOs and it is these properties which can be challenging not only to buy but also to manage.

HMOs evolved when it became uneconomical for some people to live on their own and so they shared houses and with it also shared the expense of running the house making it more affordable to live in particular parts of a city which might ordinarily be out of their budget.
Since the introduction of buy to let mortgages, in the mid 1990s, and with it the start of the buy to let boom, managing HMOs was a strategy which did not get that much attention. Capital appreciation was the deciding factor when investors were compiling their acquisition criteria; surplus cash flow was an afterthought, at best. However, since the market crash in 2007/08 the focus has switched to cash flow and with it the trend of buying into HMOs.

Today there are thousands of HMOs throughout the country, not only because it is being seen as a more attractive investment strategy but also because of the times we live in - workers are more mobile commuting to work far from home and need a bed-space during the week. And with less easy access to mortgage finance, first time buyers are renting longer, sometimes preferring to share and there is an increase in divorce and separation rates resulting in an increase in single households, with people looking to share with other like minded or similarly positioned peers.