Photo by FM Properties

Am I alone, or does anyone else get a feeling of “What the actual” as another year draws to a close?

It is hard not to look back at the last twelve months without a deep breath. The world of HMO operations has never been simple, but this year gave landlords a fresh round of obstacles. Government interventions kept coming, costs crept upward, tenant behaviour became increasingly unpredictable, and letting agent service levels declined while fees quietly increased. Yes, it has been a lot.

Yet for the eagle eyed, every difficulty also carried something helpful, hopeful or quietly encouraging. This has been a year of extremes, a year that reminded HMO landlords why resilience and adaptability matter more than ever.

Here is a look back at the realities of the year and the unexpected positives beside them.

Rising regulation

It felt like every month brought something new from Westminster. Consultations, licensing updates, compliance shifts, the Renters Rights Act rollout and continuous operational oversight all demanded attention.

The positive side

This pressure pushed landlords toward better systems, stronger housekeeping, improved safety and more professional operations. The gap between casual landlords and organised landlords widened, and those who run a tight ship are now far more attractive to lenders, buyers and tenants. These things really do matter.

Costs climbing everywhere

Utilities, especially energy, trades, compliance services, insurance, cleaning and waste collection all became more expensive and more demanding to manage. This left landlords with less time and tighter budgets.

The positive side

These pressures forced many landlords to look beyond basic cost control and reassess how their businesses operate. It encouraged fresh reviews of daily workflows, portfolio structures and the systems used to keep things moving. More landlords began adopting software to simplify admin, compliance and communication, and many started using virtual assistants to free up time and reduce the financial strain of routine tasks.

It also prompted deeper consideration of the business model itself, since student lets, HMOs and long term leases to local authorities all come with very different operational demands and financial outcomes.

Many of the landlords we spoke with came to us as a direct result of this reflection, and others, through working with us, were able to rethink how their business runs altogether. This shift helped them streamline operations, strengthen systems and build a model that supports long term stability instead of relying on old habits.

Tenants becoming more unpredictable

Higher cost of living pressures filtered into HMOs. More arrears appeared, more last minute move outs cropped up and more maintenance issues were triggered by hurried or stressed living.

The positive side

Landlords who recognised this shift took practical steps to reduce no shows, rent skippers and unnecessary disruption. Communication improved as they became clearer, more consistent and more proactive with applicants and existing tenants. Many refined their qualification process, using tech to screen enquiries or asking a VA to speak directly with the most suitable applicants to ensure they were the right fit. Onboarding became sharper, house rules were reinforced and stronger relationships formed with tenants who genuinely needed support.

Ongoing communication also became easier because platforms like the COHO tenant app helped ensure that nothing was missed and that responses stayed timely and organised. As a result, many landlords saw stability increase rather than decline.

Letting agents offering less while charging more

Controversial maybe, and we agree not all agents are the same, but it has been a common theme this year. We repeatedly heard that the management fee is rarely the final fee needed to operate a portfolio through an agent. In fairness, many agents have been stretched by new legislation and shifting compliance demands, which caused service consistency to dip. Response times slowed, operational quality weakened and landlord confidence in outsourced management declined.

The positive side

This shift encouraged many landlords to bring management back in house, often with far better outcomes. Those who took this step found renewed control, clearer oversight and cleaner financials. It also created space for agents who genuinely wanted to improve, because landlords became more selective and more aware of the value they should expect. The change nudged the sector toward higher standards and gave committed agents a clearer path to stand out.

Many landlords also realised that managing their own portfolio is far more manageable than they previously thought when the right processes and support are in place.

Landlords selling up

Every month brought news of landlords leaving the market. Tighter regulation, reduced margins and general fatigue pushed many to sell.

The positive side

For landlords with organised systems, an appetite for growth and a clear vision, this shift created real opportunity. Great properties and entire portfolios came to market, and the competitive landscape changed. Buyers who were ready to expand often found themselves able to negotiate better terms. In several regions, more HMOs appeared on the market as landlords exited, widening the choice for those exploring expansion.

A moment to exhale

This year has been demanding, no doubt. But it has also cleared space for landlords who are committed, structured and willing to operate professionally. Those who adapted have come out of the year more confident and more capable, as reflected in the increased number of clients we supported throughout the year.

As the festive season approaches, here is an invitation.

Take a moment to pause and ask yourself a simple question.

What would you like for Christmas as a landlord?

A calm tenant group, a trouble free boiler, a licence renewal that goes through without back and forth, a maintenance calendar that stays green. Or something bigger, like the purchase of a new HMO or a smoother transition into self management next year.

Whatever your wish looks like, let this be the time to claim it. After all, it has been a year that tested us, taught us and toughened us. A little festive optimism is well deserved.

About the Author:

Jane Scroggs is the founder of Beam Virtual Property Support, in partnership with The HMO Roadmap. Her team of virtual assistants handles all aspects of lettings, compliance, credit control, and property maintenance, always focused on streamlining your operations. Learn more about Jane here.