Lessons from getting planning for 1000s of Sui Generis H.M.Os with Giovanni Patania
Last updated: 31 Jan 2025
Welcome to an exclusive feature on Ryan Windsor and Giovanni Patania, two visionary leaders in the property investment world. Ryan, a seasoned mentor and award-winning property investor, and Giovanni, a renowned architect turned property developer, bring decades of experience to the table. Together, they have transformed properties into high-yielding sui generis HMOs, offering actionable strategies for maximising returns.
Sui generis HMOs, a unique and profitable approach to property investing, have grown in popularity due to their ability to generate substantial cash flow under a single roof.
What Are Sui Generis HMOs, and Why Should You Care?
Sui generis HMOs are unique, high-yield properties accommodating seven or more unrelated individuals. Unlike smaller HMOs, they require a more comprehensive planning process but offer significant advantages:
Better utilisation of space: Larger properties mean fewer planning applications and optimised management.
Increased cash flow: One property can generate income equivalent to multiple smaller HMOs.
Community benefits: Transforming commercial buildings like pubs or offices into residential spaces enhances local areas.
“These properties offer a profit boost under one roof with better management efficiency.”
For example, converting a disused pub into a nine-bedroom HMO can revitalise a neighbourhood, providing much-needed housing while yielding impressive returns.
Step-by-Step Guide to Sui Generis HMO Success
Start with Planning
Planning is the cornerstone of successful HMO projects. Developers must navigate complex regulations, ensuring that each property meets strict requirements. Key steps include:
Conducting thorough due diligence to identify deal-breaking policies, especially in Article 4 areas where planning restrictions are tighter.
Submitting a full planning application for properties with seven or more occupants.
Collaborating with architects and consultants to create compliant designs.
“Skipping planning risks your entire project. Always secure approval first.”
Ryan shared a cautionary tale of a developer who began construction without planning approval, resulting in costly delays and fines.
Licensing and Compliance
Licensing ensures your HMO meets local standards for safety and habitability. Achieving compliance requires:
Adhering to minimum room sizes and shared space requirements.
Submitting waste management and tenant behaviour plans to address common objections from neighbours.
Working closely with building control throughout the construction process to ensure compliance.
Licensing isn’t just a legal requirement—it’s a way to demonstrate professionalism and commitment to high standards.
Optimising Design for Maximum Returns
Effective design can significantly impact profitability. To maximise returns:
Include amenities like en suites and shared spaces that attract premium rents.
Avoid over-specifying kitchenettes, as this may conflict with planning and licensing regulations.
Enhance acoustic insulation and fire safety measures to meet regulatory standards.
“Preparation is key. A well-planned design avoids costly setbacks later.”
He highlighted the importance of engaging professional consultants early to prevent issues during construction.
Case Studies: Real-Life Success Stories
Case Study 1: Eight-Bedroom HMO in London
This project involved converting an end-of-terrace house into an eight-bedroom HMO:
Outcome: Annual cash flow of £115,000, property valued at £1.6 million.
Key Features: En suites, kitchenettes, and fire-compliant design.
Challenges: Overcoming objections from neighbours during the planning stage.
Giovanni’s meticulous planning ensured the project stayed on track despite local resistance.
Case Study 2: Nine-Bedroom HMO in Cambridge
This project transformed a disused pub into a nine-bedroom HMO:
Outcome: Annual cash flow exceeding £160,000, valuation at £2 million.
Key Features: Double-story extensions, advanced soundproofing, and thermal insulation.
Lessons Learned: The importance of acoustic design to meet strict noise regulations.
Both projects underscore the value of due diligence and professional oversight in achieving exceptional results.
Avoiding Common Developer Mistakes
Many developers encounter costly setbacks due to avoidable errors. Here are the most common mistakes and how to avoid them:
Skipping Due Diligence: Buying properties without assessing deal-breaking policies can derail your plans.
Ignoring M&E Design: Failing to account for electrical and water demands leads to costly retrofits.
Overlooking Acoustic Requirements: Enhanced soundproofing prevents failed inspections and tenant complaints.
Speculative Multipliers: Work with mortgage brokers to set realistic valuation expectations.
“Mistakes like neglecting planning or underestimating compliance costs can wipe out profits.”
Practical Tips for Boosting HMO Valuations
To achieve the highest possible valuations:
Add premium amenities: En suites and kitchenettes increase tenant appeal.
Optimise design: Focus on layouts that reduce void periods and improve tenant experience.
Engage experts early: Architects, surveyors, and consultants save time and money by ensuring compliance.
Ryan shared an example of a client who doubled their property’s valuation by incorporating modern design elements and high-quality finishes.
Conclusion and Next Steps
Sui generis HMOs are a lucrative strategy for property investors looking to scale their portfolios. By following expert advice from Ryan Windsor and Giovanni Patania, you can navigate the complexities of planning, compliance, and design to achieve exceptional returns.
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Additional resources
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