✏️ Updated March 2026
Rent to Rent HMO Profit Calculator:
Analyse Any Deal in Minutes
Use our interactive calculator to work out the monthly profit on any rent to rent HMO — then stress-test it at 75% occupancy to make sure the numbers really stack up.
Deal analysis is the most important skill in rent to rent. Get it right and you protect your business. Get it wrong and every void period or unexpected bill becomes a crisis. This interactive tool walks you through the full calculation — and shows you what good deals actually look like with real UK examples.
Interactive HMO Deal Calculator
The 75% Occupancy Stress Test — Why It Matters
Most beginners calculate their profit at 100% occupancy and sign the deal. Then a tenant leaves, rooms take 3 weeks to re-let, and suddenly the deal barely covers costs. The 75% stress test prevents this. For more detail, see our complete beginner’s guide to rent to rent.
The rule: Before signing any rent to rent HMO deal, run the calculator above at 75% occupancy. If the deal is still profitable — proceed. If it makes a loss — renegotiate the landlord rent or walk away. For more detail, see rent-to-rent negotiation tactics.
Here is what 75% occupancy looks like in practice for different room counts:
| Property Size | 100% Occupancy | 75% Occupancy | Verdict at 75% |
|---|---|---|---|
| 3-bed (£520/room, £900 LL rent, £350 costs) | £1,560 income → £310 profit | £1,170 income → £-80 loss | ❌ Fails at 75% |
| 4-bed (£560/room, £950 LL rent, £400 costs) | £2,240 income → £890 profit | £1,680 income → £330 profit | ⚠️ Tight but positive |
| 5-bed (£575/room, £1,200 LL rent, £480 costs) | £2,875 income → £1,195 profit | £2,156 income → £476 profit | ✅ Solid buffer |
| 6-bed (£540/room, £1,400 LL rent, £550 costs) | £3,240 income → £1,290 profit | £2,430 income → £480 profit | ✅ Solid buffer |
Real Deal Examples from Across the UK (2026)
5-bed Manchester — Professional HMO
5-bed Leeds — Professional HMO
6-bed Birmingham — Professional HMO
5-bed Bristol — Professional HMO
The Maximum Landlord Rent Formula
Many operators make the mistake of starting from the landlord's asking price and working forward. Instead, work backwards from what the deal can genuinely support:
Max landlord rent = (Total room income at 75% occupancy) − (All monthly costs) − (Target minimum monthly profit)
Example: 5 rooms at £575 = £2,875 at 100%. At 75% = £2,156. Costs = £480/month. Target profit = £500. Max landlord rent = £2,156 − £480 − £500 = £1,176/month maximum.
Any offer above this puts your minimum profit target at risk the moment you have a void. Start from the number the deal can support — not from what the landlord wants.
Frequently Asked Questions
What is a good monthly profit for an HMO rent to rent deal?
A minimum benchmark of £500/month gives you a reasonable buffer after costs and occasional voids. £700–£1,000/month is good for a 5-bedroom property in a strong market. £1,000+/month is excellent and achievable in cities like Manchester, Birmingham, Leeds and Bristol with well-negotiated deals. Below £400/month on a 5-bed, the deal has limited resilience — you are one bad month away from breaking even.
How do I know if the landlord rent is too high?
Use the maximum landlord rent formula above. If the landlord is asking for more than your calculated maximum — the deal does not stack at the terms offered. You have three options: negotiate a lower guaranteed rent, negotiate a longer rent-free period to offset setup costs, or walk away. Never accept a deal that only works at 100% occupancy — real life will not cooperate with that assumption.
Should I include a management fee in my deal analysis?
Yes — even if you are managing the property yourself initially, include a notional management cost in your analysis (typically £100–£200/month for a 5-bed). This serves two purposes: it gives you a realistic picture of the deal's long-term profitability when you eventually hire a manager, and it gives you a buffer you can use for unexpected costs in the early months. Deals that only work because you are not costing your own time are not sustainable as you scale. For more detail, see how to scale your rent-to-rent business.
Ready to Find Your First Profitable Deal?
Property Accelerator includes a comprehensive deal analyser spreadsheet plus training on how to find and negotiate deals that stack up properly.
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