Tag Archives: HMO Cardiff

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

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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.

🔄 Like, Share & Tag a Cardiff landlord who needs to see this!

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

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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!

Like, Share & Tag Another Cardiff Landlord Who Needs to See This! 🔄🏡

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