Whether you’re a seasoned landlord or just stepping into the world of buy-to-let, understanding MUFBs is crucial for maximising your investment potential and complying with regulatory frameworks. Let’s unravel everything you need to know about the dynamic landscape of MUFBs.
What are MUFBs?
MUFB stands for Multi-Unit Freehold Blocks. An MUFB is a single freehold property which has been split up into multiple self-contained units.
There may be shared communal areas between the units, such as hallways and outdoor spaces but each unit should have its own entrances, kitchens, and bathroom areas.
Types of properties that qualify as MUFBs
MUFBs can be purpose-built blocks or flats, a house converted into flats, or a row of terraced houses. An MUFB should also have the following characteristics:
- Every tenant will have an Assured Shorthold Tenancy (AST) in place.
- Each unit is self-contained, including its own entrance, bathroom and kitchen.
- Tenants will share a few facilities such as hallways, communal outdoor spaces, and parking.
Related: Tenancy Agreements: all you need to know
Differences between MUFBs and HMOs
A HMO – or ‘House in Multiple Occupancy’ – is slightly different to an MUFB. Generally, the main difference is that MUFBs are self-contained units, while HMOs are residential properties that are shared by at least three people, forming two or more households.
Tenants living in an MUFB will have individual tenancy agreements in place and private kitchen and bathroom spaces, whereas HMOs operate as shared spaces with individual bedrooms. HMO rentals are typically aimed at students, young professionals, and those seeking affordable living arrangements.
Related: How to run a successful HMO
Benefits of investing in MUFBs
Higher rental yields
Designed to accommodate multiple families or tenants within the same building, MUFBs cater to individuals or families who prefer separate living spaces but within the same building structure, for instance, student lets.
MUFBs typically consist of several self-contained units within a single property, which means you can charge separate rents for each unit. This setup often results in a cumulative rental income which might be higher than what could be earned from a single-family home of similar size.
Lower risk of void periods
Void periods – or time when the rental property is empty – could be seen as a lower risk for landlords of MUFBs as there are multiple tenancies active during the same period. Even if one unit becomes vacant, the rental income from the other occupied units can reduce the overall financial impact.
Easier management compared to HMOs
Managing properties can be time-consuming and complex, especially with Houses in Multiple Occupation (HMOs), where tenants share facilities like kitchens and bathrooms. In contrast, MUFBs are comprised of self-contained units, each with its own amenities.
This separation simplifies management tasks, such as maintenance and tenant relations, as there is less communal space to oversee and fewer disputes over shared facilities.
Related: The ultimate guide to property management
Challenges of owning and managing MUFBs
Legal and regulatory requirements
Navigating the legal and regulatory landscape can present unique challenges for landlords of MUFBs. These properties must comply with a range of local and national regulations, including building codes, safety standards, and tenancy laws.
Ensuring each unit meets these requirements can be complex and time-consuming. Additionally, landlords must stay updated on changes in legislation, such as updates to fire safety regulations or new landlord licensing schemes, to avoid legal issues and potential fines.
Property maintenance and upkeep
Maintaining multiple self-contained units within a single property can sometimes be more demanding than managing a single-family home. Each unit requires regular maintenance to keep it in good condition and to comply with health and safety standards.
This includes everything from routine inspections and repairs to emergency maintenance and renovations. The cumulative cost and effort of maintaining several units can add up, so it’s important to have a proactive maintenance plan and a reliable network of contractors.
When you work with Martin & Co, we can bring your MUFBs up to scratch, lending a hand with every aspect of your lets.
Related: What does a letting agent do?
Tenant management
Managing tenants in MUFBs presents unique challenges. With multiple tenants living independently within the same property, landlords must handle a range of tenant needs and expectations. Effective communication is essential to address issues promptly and maintain a positive living environment.
Moreover, dealing with tenant turnover can be more frequent in MUFBs, requiring diligent tenant screening processes and efficient re-letting strategies to minimise void periods.
How professional property management can help
Martin & Co letting agents can offer invaluable support for landlords managing MUFBs. Our expertise ensures compliance with legal and regulatory requirements, while our proactive maintenance strategies preserve property value and tenant satisfaction.
Martin & Co handles all aspects of tenant management, from screening and communication to rent collection and maintenance, helping to reduce turnover and void periods. Our expert market insights mean we can take care of the administrative burden, freeing landlords to enjoy the benefits of their investment without the associated stress.
Need help managing your investment? Contact Martin & Co’s dedicated team today
