What is a good rental yield?

Gross yields of 5–8% are typical for single lets in most UK regions. HMOs can achieve 8–12% gross yield but require more management. Net yield (after costs) is a more useful measure.

What is the difference between mandatory and additional HMO licensing?

Mandatory licensing applies to HMOs with 5+ occupants in 2+ households. Additional licensing is introduced by local councils and can apply to smaller HMOs.

Can I transfer my existing properties into a limited company?

Yes, but it is treated as a sale for tax purposes, triggering SDLT and potentially CGT. This makes it expensive for most landlords with existing portfolios.

At what point should I use a letting agent?

Many landlords find that beyond 5–10 properties, professional management becomes cost-effective when you factor in the time saved and risk reduction.

What notice period do I need to give?

Notice periods under the Renters' Rights Act vary by ground. Most grounds require 4 months' notice. Ground 8 (rent arrears) requires 4 months. Some grounds (e.g. anti-social behaviour) have shorter periods. Always check the current prescribed notice periods.

What happens if the tenant does not leave after the notice expires?

You must apply to the court for a possession order. Never attempt to remove a tenant yourself — this is illegal eviction under the Protection from Eviction Act 1977, carrying an unlimited fine and/or imprisonment. Once a possession order is granted, apply for a warrant of possession if the tenant still does not leave.

Stage 8 of 8

Growing Your Portfolio

Expand your property portfolio strategically — from your second property to HMOs, limited companies, and professional portfolio management.

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Your Journey at a Glance

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Define Your Portfolio Strategy

HMO Requirements

Limited Company Structure

Systems & Processes for Multiple Properties

Notice & Possession for Portfolio Landlords

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What you'll achieve in this journey

Portfolio growth strategy defined

Finance and tax structure reviewed

HMO requirements understood if applicable

Limited company structure considered

Systems and processes scaled for multiple properties

19%

Corporation tax

Small profits rate for limited companies (2026)

HMO threshold

Properties with 5+ occupants need an HMO licence

45%

Ltd Co. landlords

Portfolio landlords now using limited companies

£50k

HMO licence fee

Typical 5-year HMO licence cost (varies by council)

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Define Your Portfolio Strategy

HMO Requirements

Limited Company Structure

Systems & Processes for Multiple Properties

Notice & Possession for Portfolio Landlords

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Top Tip

Review your ownership structure before purchasing your second property — transferring existing properties into a limited company triggers Stamp Duty and CGT, so it's far cheaper to get the structure right from the start.

Growing Your Portfolio — Stage 8 Interactive Journey Room