Rob and Hayley’s Story
Rob and Hayley, the duo behind Peach Co-Living, entered the UK property market with a clear objective in mind: to build a passive income through high-quality HMOs. They planned to return to South Africa, backed by their UK investments and some steady returns.
To get their strategy off the ground, they bought a detached property in Sutton-in-Ashfield with the intention of converting it into a high-end HMO. Rob’s vision was to create boutique-style rooms with premium finishes that would stand out in the local market. Though there is some demand for better-than-average rooms in the area, we initially advised them to be cautious of the local rental ceiling, and suggested that they target an over-50s demographic. Rob ultimately decided to pursue the higher-spec design, which came with its benefits but also added significant costs and complexity to the project.
Challenges: Managing the refurbishment from afar
Once the conversion began, it became clear that delivering such a high standard was going to be challenging. The third-party project manager (in charge of scheduling trades, ordering materials and overseeing the build) fell short of expectations. As a result, the builders were working from incomplete specifications and materials were arriving late. Adding to the difficulties, there were also unexpected structural issues which required new planning permissions and redesigns. These setbacks caused delays that strained the budget and timeline.
Rob and Hayley were based in London and the project started to take over their lives. Instead of the semi-passive experience they’d hoped for, they found themselves constantly approving design details, answering builders’ queries and negotiating quotes. Costs went up, largely due to Rob’s commitment to high-end finishes and bespoke furnishings. While these decisions ultimately helped secure higher rents, they also inflated the budget and extended the refurbishment timeline.
Our guidance: Realistic expectations and local knowledge
Although we weren’t the appointed project managers, we offered Rob and Hayley strategic guidance at no extra cost because we understood how daunting refurbishments can be – especially for clients who live too far away to easily oversee day-to-day progress. We shared local market insights to help them make informed choices and advised them on balancing the boutique concept with realistic rental expectations. We also stepped in to mediate disputes or provide clarifications whenever the build process faltered.
Our priority was to protect the financial viability of the project while preserving Rob’s vision for a premium HMO. We conducted on-site snagging checks, suggested ways to minimise delays and recommended cost-saving measures that wouldn’t compromise the end result. Most importantly, we worked to ensure the finished property would attract tenants willing to pay above-average rents, while staying within local market limits.
Another setback: Council tax charges
Just when things seemed to be back on track, the Valuation Office Agency (VOA) decided to band each room in the HMO individually for council tax, rather than for the property as a whole. This significantly cut into the property’s profit potential – which is a common issue for HMO landlords in the area. Over the course of a year, we worked with Rob and Hayley to challenge the VOA’s decision. In the meantime, we placed council tax in the tenants’ names, allowing single occupancy discounts and easing the financial strain. Eventually, the VOA reversed its decision, restoring the property’s profitability.
Where are they now?
Despite the drawn-out and stressful development phase, the Sutton-in-Ashfield HMO became a sought-after, fully-let property. Tenants now pay above-average rents for the premium finish Rob insisted on, which justifies the initial overspend. The experience, however, taught Rob and Hayley about the difficulties of managing large-scale refurbishments from afar.
To avoid any further stress, they decided to buy their next two HMOs “off-the-shelf” through Purseglove Property. These properties had been fully converted and already had tenants in place. While there were still challenges with valuations and financing, our team worked closely with the brokers and surveyors to smooth out the process. This allowed Rob and Hayley to focus on their busy professional lives and their plans to return to South Africa, rather than dealing with another lengthy refurbishment.
Today, Rob and Hayley enjoy a stable, income-generating portfolio of HMOs and have achieved their dream of moving back to South Africa. We continue to manage their properties, handling everything from tenant sourcing and maintenance to unexpected issues like the VOA’s council tax decisions. While the journey had its struggles, Rob and Hayley’s story is a testament to what can be achieved with the right guidance, some perseverance and lots of flexibility to adapt.
