HussnanStrategic Advisory
HMO Appraisal EngineBuild to Rent · Build to Sell
Exit strategy
Appraisal mode
Profit hurdle

Residual appraisal

Room schedule & rent roll

HMOs are valued on income per room, not £/sqft. Enter the lettable rooms and the achievable rent for each. The rent adjustment slider flexes every room at once.
Room typeNo.Size (m²)Rent £/monthAnnual gross
Total
Licensing: an HMO with 5 or more occupants forming more than one household requires a mandatory licence; smaller HMOs may need one under an additional licensing scheme. Check whether an Article 4 direction removes permitted development rights for C3→C4, and whether the use is C4 or sui generis. Confirm before relying on this rent roll.

Net operating income

Gross rent less voids and operating costs. NOI drives both the capital value on completion and the refinance.

Capital stack

Two-tranche only — senior development debt at 67.5% LTC (land + construction + fees), balance sponsor equity. No mezzanine.

Sensitivity 1 — rent × yield

Sensitivity 2 — rent × build cost

Planning & risk register

HMO-specific consenting and operating risks. Red-flag anything that threatens the income or the residual.
Authority: Use class: Article 4: