A landlord’s large HMO in East London was losing thousands each month to vacant rooms, compliance gaps, and difficult tenants. Here’s how Prem Property turned it around in under 12 weeks.
The property,a large HMO spanning multiple floors in East London, had enormous potential. With 10 rooms across a well-located building, it should have been generating substantial rental income for the landlord each month. Instead, persistent vacancies, a growing list of compliance concerns, and unresolved tenant issues meant the property was operating well below its capacity.
The previous management arrangement had broken down, and the landlord approached Prem Property looking for specialists who understood large HMOs. Our team, experienced managing five-plus bedroom properties and built specifically for this type of portfolio, took over management and set about transforming the property from the ground up.
Based on our research and experience, properties with five or more bedrooms and three or more bathrooms consistently achieve the highest rental yields for landlords. Professional tenants actively seek well-managed, well-maintained shared living and the demand in London is strong. Our job was to unlock that demand for this property.
Eight rooms were either vacant or taken offline. At an average room rate of £900/month in London, this meant over £7,200 in lost income every single month the situation continued.
Several tenants had accumulated significant arrears, in some cases exceeding £1,000 per person, due to a lack of proactive rent management and enforcement under the previous arrangement.
Two tenants were engaging in behaviour that compromised the safety and well-being of others in the property, creating an environment of unease among the broader tenant community.
Internet connectivity failures, a deteriorating roof section, and a backlog of unaddressed repairs had left several rooms unrentable and reduced the overall appeal of the property.
Shortly after takeover, a burst mains pipe caused severe flooding in one tenant’s room. Immediate intervention was required to protect the property and ensure tenant welfare.
Licensing requirements, safety documentation, and compliance records had not been maintained properly, exposing the landlord to significant legal and financial risk.
We addressed the disruptive tenants directly through structured mediation and, where necessary, formal notice procedures, protecting the remaining tenants and restoring a safe, professional living environment across the property.
A systematic review of all tenant accounts was conducted. Payment plans were agreed where appropriate and enforcement action initiated where tenants were unwilling to engage. Clear communication was sent to all residents that rent obligations would be upheld consistently.
When the burst mains pipe flooded a tenant’s room, our team mobilised within the hour, coordinating with the water supplier, carrying out temporary repairs the same evening and permanent fixes by the following morning. Bottled water was provided to all tenants overnight. The crisis was fully resolved within 24 hours.
We assembled a specialist team of contractors, roofers, plumbers, gas engineers, electricians and handymen, and implemented a preventative maintenance programme. Offline rooms were brought back to a lettable standard and communal areas were refreshed to improve tenant experience and market appeal.
Vacant rooms were professionally marketed across multiple channels, targeting vetted professional tenants. Critically, we did not rush to fill rooms at any cost, we screened carefully to ensure the quality of tenants, protecting the property’s long-term performance.
All outstanding compliance matters were identified, documented, and resolved. Licensing was brought fully up to date, removing the legal exposure the landlord had unknowingly been carrying under the previous management arrangement.
Within 90 days, the property had been transformed. Vacancies were eliminated, maintenance was under control, and the landlord was receiving consistent, on-time rental income, with full visibility through regular reporting.
The landlord moved from a situation of financial uncertainty and compliance risk to a fully managed, income-generating portfolio, without needing to be involved in day-to-day operations. That is what hands-off property management actually looks like.
Before Prem Property took over, the landlord was losing an estimated £3,600+ per month from vacant rooms alone, before factoring in arrears, emergency repair costs, and compliance penalties. Two empty rooms for just six weeks in London amounts to over £1,500 in lost income.
Our management fee is 12% of the rent collected. On a 10-room property generating £3,000/month in gross rent, that is £2,640/month, a fraction of what the landlord was losing in vacancies. The maths of professional management are straightforward.
Beyond income recovery, the improvements to the property’s condition, compliance standing, and tenant quality have enhanced its long-term capital value, positioning it as a premium HMO investment in the London market.
If you own a five-plus bedroom HMO in London and you’re dealing with vacancies, difficult tenants, or a management situation that isn’t working — let’s talk. We review every property submission before the call, so our conversation will be focused on your specific situation.
