According to Aldermore research, which uses data from Pegasus Insight, this compares to £61,846 in gross rental income in the last 12 months for the average non-HMO landlord.
The data also shows that three in 10 HMO landlords fell into the gross rental income category of £100,000-199,999, compared to just one in 10 non-HMO landlords.
Going up to £200,000-plus in gross rental income, 13% of HMO landlords fell into this bucket, compared to 5% of landlords without HMOs.
Polling also shows that there are benefits for HMO tenants, as students living in HMOs pay £200 less per month than other private renters.
The report added that almost three-quarters of HMO tenants said their living situation has benefitted them socially, as they interact with more people.
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Jon Cooper, Aldermore’s director of mortgages, said: “Whilst it’s common knowledge that HMO landlords tend to benefit from enhanced annual incomes and greater yields, the difference in scale here is major. The numbers here are a timely reminder of how attractive HMOs can be as an asset class for many landlords across the country.”
He added: “While no housing option is without its trade-offs, our data suggests that HMOs are defying outdated perceptions and offering a more affordable and rewarding experience for many students and presenting a compelling financial opportunity for landlords.
“With the right management and attention to quality, landlords can enjoy reliable returns while offering affordable, socially enriching homes that truly make a difference to student life.”
