Shortage of 1-Bedroom Homes in Wales: Why HMO Demand is Rising in Cardiff

Wales is currently facing a shortage of 1-bedroom homes, leaving many tenants—especially young professionals, students, and single individuals—struggling to find affordable housing. With rental demand increasing and availability decreasing, Cardiff landlords have a unique opportunity to meet this growing need by investing in and optimising Houses in Multiple Occupation (HMOs).

At Rooms in Cardiff, we specialise in HMO management, ensuring landlords maximise rental income while providing high-quality, affordable accommodation for tenants in Cardiff. Plus, 10% of our management fees go towards supporting vulnerable individuals facing homelessness. 🏡💙


Why is There a Shortage of 1-Bedroom Homes in Wales?

🏠 High Demand, Low Supply – More young professionals and single renters are seeking self-contained homes, but the supply simply isn’t keeping up.

💰 Rising Rental Costs – Increased property prices and mortgage rates mean 1-bed flats are becoming too expensive for many renters.

🚧 Planning & Development Restrictions – The slow rate of new housing developments in Cardiff and across Wales is limiting the supply of small, affordable homes.

🔀 Larger Homes, Fewer Options – Many landlords own larger properties, making it difficult to meet the demand for affordable single-living spaces.


How This Benefits Cardiff HMO Landlords

With 1-bedroom flats in short supply, more tenants are turning to shared accommodation as an affordable alternative. This means HMO properties in Cardiff are more in demand than ever. 📈🏡

Why HMOs Are the Perfect Solution

Increased Demand – More single renters are actively looking for high-quality rooms in shared houses.

Higher Rental Yields – HMOs typically generate higher rental income compared to single-let properties.

Reduced Vacancy Rates – With tenants struggling to find 1-bed homes, landlords can expect consistent occupancy.

Flexible Tenant Base – HMOs attract students, young professionals, NHS staff, and key workers, ensuring a steady flow of renters.

Cost-Effective for Tenants – Many renters prefer shared housing due to lower rental costs compared to renting a full 1-bed apartment.

With the right property management team, Cardiff HMO landlords can take full advantage of this shift in demand while ensuring their properties are well-maintained, compliant, and profitable.


How Rooms in Cardiff Can Help You Maximise Your HMO Investment

At Rooms in Cardiff, we offer expert HMO management services to help landlords make the most of their properties. We take care of tenant sourcing, rent collection, property maintenance, and compliance—so you don’t have to worry about the day-to-day hassles of being an HMO landlord.

💙 Giving Back to Cardiff
When you partner with Rooms in Cardiff, you’re also making a difference. 10% of our management fees go directly to supporting homeless individuals and those at risk of homelessness in Cardiff through local initiatives like Homeless Evolution.


Are You a Cardiff Landlord? Let’s Talk!

📩 Want to take advantage of the rising demand for HMOs in Cardiff? We can help! Complete our short contact form today and let’s discuss how we can maximise your rental income while providing much-needed housing in Cardiff.

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The Problem with Fixed-Term Occupation Contracts: What Cardiff HMO Landlords Need to Know

If you’re a Cardiff HMO landlord, you’re probably well aware of the challenges that come with managing multiple tenants under the Renting Homes (Wales) Act 2016. One of the biggest issues? Fixed-Term Occupation Contracts.

While they might seem like a straightforward way to secure tenancies, they come with hidden complexities that can cause headaches for landlords. On the other hand, Periodic Occupation Contracts offer greater flexibility, fewer administrative burdens, and better legal protection.

So, should you ditch fixed-term contracts and opt for periodic contracts instead? Let’s break it down.


Why Fixed-Term Occupation Contracts Are a Problem for HMO Landlords

Originally, the Renting Homes (Wales) Act 2016 was designed to use only periodic contracts. However, fixed-term contracts were later introduced—but they come with several downsides for landlords.

🔴 Key Issues with Fixed-Term Contracts:

🚨 More Paperwork: Every time a fixed-term contract ends, landlords must issue a new written statement.

📜 Legislated Default Rules: When a fixed-term contract rolls into a periodic contract, some agreed-upon terms reset to the default rules—for example, permitted occupiers and inventory obligations.

🔄 Loss of Landlord Rights: Once a fixed term ends, landlords lose certain rights, such as modifying supplementary terms (e.g., restricting occupiers).

📈 No Automatic Rent Increases: You can’t increase rent during a fixed-term contract unless the tenant agrees. With a periodic contract, rent can be reviewed after 12 months.

Resets Legal Notices: If you’ve served a rent arrears or anti-social behaviour notice during a fixed-term contract, you can’t rely on it once the contract is renewed—it’s like starting from scratch!

For HMO landlords, these issues can lead to more paperwork, reduced control, and a lack of flexibility when managing tenants.


Why Periodic Occupation Contracts Are a Better Option

Less Admin Work – A periodic contract never needs renewing, meaning no hassle with reissuing written statements.

Continuous Flexibility – Any modifications to key tenancy terms stay valid indefinitely rather than resetting every contract cycle.

Easier Evictions & Possession Proceedings – If a tenant builds up rent arrears or engages in anti-social behaviour, landlords can rely on past notices when seeking possession.

Rent Increases Allowed – Unlike fixed-term contracts, periodic contracts allow landlords to increase rent after 12 months without requiring the tenant’s agreement.

Easier Tenant Swaps – In HMO properties, tenants come and go. With a periodic contract, swapping tenants requires only a simple notification process—not a brand-new contract.

For most Cardiff landlords, a periodic contract makes life simpler, removes unnecessary admin work, and keeps you in control of your property.


Are There Any Downsides to Periodic Contracts?

Of course, there are some trade-offs.

Less Tenant Security: A tenant can leave at any time with four weeks’ notice, which can create uncertainty in your rental income.

Joint Tenancy Risks: If you’re renting to multiple tenants under one contract, a single tenant can leave with little notice, causing instability. (However, you can modify this with a two-month notice rule.)

Student Lets May Require Fixed Terms: If you’re renting to students, fixed-term contracts may still be preferable, as they provide structured tenancies for the academic year.


Conclusion: Should You Ditch Fixed-Term Contracts?

For most Cardiff HMO landlords, the answer is yes.

🔹 Periodic contracts offer less hassle, greater flexibility, and stronger legal protections.
🔹 Fixed-term contracts create unnecessary admin work and can put landlords at a disadvantage if they roll over into periodic tenancies.
🔹 If you’re renting to students, fixed-term contracts may still work—but you need to be careful about the transition process.

As a Cardiff landlord, do you still prefer fixed-term contracts, or have you already switched to periodic contracts? Let us know in the comments! 👇

Ready to Simplify Your HMO Management? Let’s Talk!

At Rooms in Cardiff, we specialise in providing hassle-free, high-quality property management for Cardiff HMO landlords. If you’re tired of the admin, legal complexities, and ever-changing rental regulations, let us take the stress off your shoulders!

📩 Interested? Fill out our short Google Form and we’ll be in touch to discuss how we can help maximize your rental income while keeping your property fully compliant and occupied.

💙 Make a Difference with Your Investment!
When you choose Rooms in Cardiff, you’re not just securing expert property management—you’re also giving back to the community. We proudly donate 10% of our management fees to Homeless Evolution, helping to fund Support Workers who assist Cardiff’s most vulnerable people in finding stability and housing.

👉 Let’s work together to make property management easy while making a real difference! Complete the form today!

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Room Rental Data for Cardiff in December 2024: Insights for HMO Landlords

Are you a landlord with a House in Multiple Occupation (HMO) in Cardiff? The rental market is thriving, and now is the perfect time to partner with a trusted expert to manage your property and maximise your investment. At RoomsInCardiff.com, we specialise in HMO property management, helping landlords like you achieve exceptional returns by renting properties on a per-room individual contract basis.

As a leading name in Cardiff’s HMO rental market, we take the stress out of managing your property while ensuring your tenants receive high-quality, well-managed accommodation. Here’s how we can help you stay ahead in Cardiff’s competitive rental market.


Cardiff Rental Market Overview for December 2024

Recent data shows the average room rental rate in Cardiff in December 2024 stood at £662 per month, while en-suite rooms commanded even higher prices, ranging between £688 and £825 per month. This reflects the growing demand for affordable yet private and comfortable living spaces.

By renting out your HMO on a per-room contract basis, you can achieve higher rental yields compared to traditional tenancy agreements. Our team at RoomsInCardiff.com specialises in managing these types of contracts, ensuring every room in your property generates maximum income.


Why Choose RoomsInCardiff.com?

Managing an HMO can be challenging, but with RoomsInCardiff.com, you gain a partner who simplifies the process and enhances your investment. Here’s what makes us Cardiff’s go-to HMO property management company:

  1. Maximised Returns: Renting HMOs on a per-room individual contract basis allows landlords to secure higher overall rental income. We’ll help you achieve full occupancy with premium rates.
  2. Stress-Free Property Management: From tenant sourcing and contract management to maintenance and compliance, we handle it all, so you don’t have to.
  3. Specialist Knowledge of Cardiff: With in-depth expertise in Cardiff’s rental market, we understand tenant needs and know how to make your property stand out.
  4. Enhanced Tenant Experience: Our hands-on approach ensures happy tenants, leading to longer stays, fewer vacancies, and consistent returns.
  5. Compliance and Safety First: HMOs come with specific regulations, and we ensure your property meets all legal requirements, so you can rent out rooms worry-free.

Why Contract holders Love Individual Room Contracts

The growing popularity of renting on a per-room basis is driven by preference. Students, young professionals, and international renters all value flexible, affordable options with added privacy. En-suite rooms are especially in demand, with contract holders willing to pay premium rates of up to £825 per month for quality accommodations.

By working with RoomsInCardiff.com, you can cater directly to this audience, ensuring your property is always in demand and achieving its full earning potential.


How RoomsInCardiff.com Maximises Your Investment

  1. Targeted Tenant Marketing: We showcase your HMO to the right audience using platforms and strategies that attract reliable tenants.
  2. Optimising Room Pricing: Using market data and trends, we ensure each room in your HMO is priced competitively to maximize returns while maintaining full occupancy.
  3. Expert Tenant Vetting: Our comprehensive vetting process guarantees trustworthy tenants, minimising risks and ensuring timely rent payments.
  4. Hands-Off Management: From day-to-day maintenance to disputes, we take care of everything while keeping you updated every step of the way.
  5. Focus on Long-Term Success: We don’t just fill rooms; we build lasting relationships with tenants and landlords, ensuring consistent returns year after year.

The Cardiff Advantage for HMO Landlords

Cardiff is one of the UK’s fastest-growing rental markets, driven by a diverse population of students, young professionals, and international tenants. HMOs are particularly popular due to their affordability and convenience.

Partnering with RoomsInCardiff.com allows you to:

  • Tap into a steady demand for rooms across Cardiff.
  • Increase your rental income by offering flexible contracts.
  • Provide a superior living experience, ensuring long-term tenant retention.

Ready to Unlock the Full Potential of Your HMO?

At RoomsInCardiff.com, we’re dedicated to helping landlords like you achieve the best possible returns. Our proven approach to HMO property management, combined with a deep understanding of Cardiff’s rental market, makes us the perfect partner for your investment.

Whether you’re a seasoned HMO landlord or new to the game, we’ll handle every aspect of your property management, ensuring it operates efficiently and profitably.


Contact Us Today

Don’t let your HMO’s potential go untapped. Partner with Cardiff’s leading HMO property management company and experience the difference we can make. Visit RoomsInCardiff.com or get in touch with us today to learn how we can help you maximize your investment returns.


Invest smartly. Rent with ease. Choose RoomsInCardiff.com.