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When you think of a HMO, a property with shared facilities where rooms are rented individually, what springs to mind? I bet it isn’t 65-inch TVs, rooms with gold finishes and a perfect bathroom to bedroom ratio?
Reporter Elli Hodgson speaks to two entrepreneurs who are on a mission to “level-up” shared accommodation and improve perceptions around the growing number of HMOs in Kent…
Ellis O’Sullivan and Aaron Prowse are property developers and investors who currently have nine HMO’s in Medway and Gravesend, with four more being purchased and another two under construction.
For many residents, these two best friends and business partners might be considered public enemy number one, as applications for these multiple occupation properties tend to generate a lot of objections.
The pair admit public perception of HMOs is pretty negative, with expectations of “slum quality” housing, noisy neighbours and a property in disarray, with some branding them an “eye-sore”.
But these two entrepreneurs say they are offering something a world away from these pre-conceived ideas and instead take pride in providing quality accommodation for working professionals, which is not only sound-proof, but has ample bin storage too.
Ellis, now 32, says he always wanted to be in business from a young age. But in 2013 he had a serious motorbike accident in City Way, Rochester where he and his passenger flew 50ft into incoming traffic - sustaining horrendous injuries.
Ellis, who was 20 at the time, faced a long recovery and had to learn how to walk again - a time in his life he describes as “very dark”. But after he pulled through, in the run up to his 21st birthday he became determined to make his business dream come true.
When his friend Aaron pushed him to attend some networking events in the property industry, sharing a like-minded dream of running a business, the pair went for it and delved into the world of property investing.
The business owners first started by renovating and selling a flat but over time they began heading towards the HMO market.
Prompted by the difficulties some of their family had faced when looking for rental accommodation, with many of the options being outdated or not feeling homely, Aaron and Ellis were prompted to start their company A&E Property in 2016.
“As someone who is renting you’re not going to refurbish your whole house because it’s not your property,” Ellis says, “but at the same time it always feels like you’re in rental accommodation and not a proper home.
“The idea was that we wanted to produce such high quality that they feel like it’s their home and that it’s such a great standard that it feels homely. That was the basis of where we were going with the HMO market.
Aaron, a dad-of-three from Swanley, said: “We don’t want to have bog standard magnolia walls, terrible accommodation and 40 people sharing a bathroom.
“We want to bring the same quality we bring to our new builds into the HMOs.
“People want homes to be proud of, right? If you’re in bad environment or a bad accommodation that can really set your mood.
“But if you’re in something that is really refreshing, you wake up in a good mood, it really helps people’s mental health.”
It is clear in their latest renovation in Gordon Road, Gillingham, that a lot of investment has taken place, with each of the seven bedrooms having its own bathroom, double-bed, television and in some, a personal kitchen unit. There’s also an equipped gym and cinema room.
Ellis said their properties are a “bridge” between HMO accommodation which is cheaper, and flats, which would be the next level up and cost more.
He added: “Our product is kind of in-between those two things, so it is of a very high standard but it’s not a flat.”
The rooms, which come fully bill inclusive, are marketed towards professionals, such as doctors, nurses, and carers. Prospective tenants are asked pre-selected questions to check their means to afford the rental.
After a viewing, the business owners will make a judgement on whether the person will be a great fit for the house, and if they meet this criteria, they will be asked to apply.
For tenants looking to stay at the Gordon Road HMO, the cost for a standard room with the extra gym and cinema amenities starts from around £800pcm.
How do Ellis and Aaron mitigate problems surrounding lack of parking, noise and space, all which form the backbone of most neighbourhood objections.
Aaron said each property has “ample storage” for bins and, recognising that some areas where the company owns HMOs does not have regular enough rubbish collections, the developers pay for a private collection to come in-between to prevent a hoard of unsightly rubbish spilling out onto the streets.
Noise also comes up as a frequent concern raised by families living nearby. But the property duo say acoustic plasterboard is used on the party walls to prevent noise pollution from their residents but also from the neighbouring properties as well.
Perhaps most contentious are the criticisms regarding parking, with permit-only streets filling up during rush-hour.
Aaron says the majority of tenants commute to London and use public transport, and usually a maximum of three tenants will have a car.
But, as residents in Selbourne Road asserted, there is no guarantee each tenant will not have a car, and in many places there are no restrictions on the number of occupiers who can apply for a permit – so there is essentially nothing to stop all seven prospective tenants from parking.
But Aaron argues that many family homes with grown-up children will have multiple vehicles.
The 32-year-old-said: “Before, this house was four-bed, so a four-bed family going in here will be mum, dad, daughter, son - there is typically three to four cars there anyway.
“Most of our tenants don’t drive. They pick the house depending on where they work so they can be really close and we have houses close to the hospital as well.”
Ellis and Aaron’s latest project in Gordon Road was bought for £240,000 with renovations coming in at around £260,000.
Ellis said: “So we’ve spent more than the property was even bought for on the refurbishment of the property and we need everything to go right for it to be okay.
“The amount of risk which goes into it I think it’s fair to get a profit from that.”
And although high-quality HMOs is their “niche”, Aaron believes it is better for everyone if all HMO accommodation is of a “decent standard”.
“When someone can just throw out something that’s not very good, there’s no levelling up,” he adds.
Moving forward, the friends hope to create more homes for people, and want to play a part in changing the perception around HMOs by sharing their day-to-day life behind the scenes on their Instagram account @aneproperty.
The business owners recognise that some of the homes they have converted into a HMO were traditional “family homes” – which are still very much needed in the community.
To combat this, they say they would like to start bringing their high-quality homes to parents too.
They believe if more people saw the quality of their developments it would go a long way in reshaping perceptions, so much so, that they would always welcome neighbours to come and have a look because it will “put their minds at rest.”
But as the business owners admit, there is still a lot of bad quality HMO accommodation out there, and unfortunately not all developers are going to be completing work to the same standard, or going to such lengths to mitigate any negative impact on neighbouring properties.
Aaron said: “When a neighbour hears a HMO is coming, it’s a worry because they don’t know what type of tenant profile is going to go in there.”
Ellis adds: “We don’t want to deal with any slum properties, it’s not what we’re about. It’s not our brand. Everything should be taken on its own merit.”
