HMO Interior Design: How to Increase Rental Value and Returns
- Jul 31
- 5 min read
Credit: Unsplash
For HMO investors, interior design isn't simply about making a property look good.
The right design decisions can make rooms more desirable, improve how efficiently you use the available space and help your property compete for tenants. The wrong ones can leave you spending money on features that look impressive but do little for rental performance.
So, how can interior design increase HMO rental value? And which improvements are actually worth paying for?
Whether you're converting a property into an HMO or upgrading an existing one, here's where design can make a measurable difference.
Table of Contents
Can Interior Design Really Increase HMO Rental Value?
Yes, but good design alone doesn't guarantee higher rent or a higher valuation. For an HMO, design works alongside location, room sizes, specification, condition, tenant demand and compliance.
The most useful question isn't:
"How can I make this HMO look expensive?"
It's:
"Which improvements will make this property more attractive to the tenants I'm trying to reach?"
For example, a professional HMO tenant may value a well-designed workspace and excellent storage more than expensive decorative finishes. In a shared house aimed at younger tenants, a generous kitchen-diner or comfortable communal area may be more valuable.
Design should follow your target tenant and local market.
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Which HMO Improvements Are Worth the Money?
Some upgrades have a bigger impact than others.
Prioritise:
durable flooring in high-traffic areas
good-quality mattresses and beds
generous storage
practical lighting
well-designed kitchens
attractive but robust bathrooms
comfortable communal spaces
desks or work areas where relevant
good-quality, easy-to-maintain finishes
Think about cost per room versus potential rental uplift.
For example, if a £1,000 improvement allows you to increase rent by £50 per month, the gross additional annual rent would be £600. That's much more useful than simply saying the improvement "adds value".
Of course, rental increases depend on local demand and comparable properties, so always test your assumptions against the market.
How Can You Make Small HMO Rooms Feel Bigger?
Room size is one of the biggest constraints in many HMOs, particularly in converted properties. You can't physically make a bedroom larger, but you can make it work harder.
Try:
built-in or wall-mounted storage
furniture scaled to the room
lighter finishes
mirrors where appropriate
concealed storage
wall-mounted lighting
clear circulation routes
A common mistake is filling a small room with oversized furniture because it looks impressive in isolation.
Instead, consider what the tenant actually needs.
A well-planned 10m² room can feel considerably more useful than a poorly planned room of the same size.
Remember that minimum room sizes and other HMO requirements can apply, so design should never be used to compensate for a space that doesn't meet the relevant rules.
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What Makes an HMO Common Area More Attractive?
Shared spaces can influence how a prospective tenant perceives the entire property.
A dark kitchen with nowhere comfortable to sit can make an otherwise good HMO feel purely functional.
A well-planned communal area could include:
a proper dining area
comfortable seating
good task and ambient lighting
sufficient storage
durable worktops and flooring
somewhere to work or socialise
You don't necessarily need a huge open-plan kitchen. Sometimes the better investment is making the existing footprint work harder.
For example, replacing a bulky dining table with a built-in bench can free up circulation space while still providing somewhere for several tenants to eat.
That is design for profit: solving a practical problem rather than adding decoration for decoration's sake.
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Should You Spend More on Kitchens and Bathrooms?
Usually, yes, but strategically. These are high-use areas and are often among the first things prospective tenants notice.
That doesn't mean choosing the most expensive tiles or appliances. Instead, focus your budget on:
Kitchen
robust worktops
sufficient storage
reliable appliances
good lighting
enough fridge and freezer capacity
easy-to-clean surfaces
Bathroom
durable fittings
good ventilation
adequate storage
practical lighting
finishes that can withstand heavy use
A £500 designer tap may look impressive, but spending that money on better storage, ventilation or durable fittings may provide considerably more practical value.
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How Does Design Affect HMO Valuations?
For investors, this is where design becomes particularly interesting. A property with higher rental income may also be more attractive to investors, but valuation isn't based on interior design alone.
Depending on the property and valuation method, factors can include:
rental income
location
condition
comparable properties
demand
tenancy arrangements
operating costs
the property's legal and planning position
This is why a beautifully designed HMO isn't automatically worth more.
However, thoughtful design can support stronger rental performance and improve the overall quality and marketability of the asset.
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Working with an interior designer doesn’t need to break the bank. At HiiGuru, you can book a consultation for just £35 ($45). Need help urgently? There’s availability every day.
What Should You Avoid Spending Money On?
Not every improvement creates value. Be cautious about spending heavily on:
fragile finishes
overly personalised décor
expensive features tenants won't use
excessive bespoke furniture
trend-led design that will date quickly
An HMO needs to look appealing without becoming expensive to maintain.
The best approach is usually durable, attractive and easy to replace.
How HiiGuru Can Help You Design for Better Returns
Designing an HMO for profit requires a different mindset from designing a family home.
You're balancing tenant expectations, rental income, durability, compliance, budget and the long-term performance of the property.
This is where an interior designer with HMO experience can add real value.
HiiGuru gives property investors access to interior designers and HMO specialists who can help you assess where design investment is likely to have the greatest impact. That could mean rethinking a room layout, improving storage, upgrading a communal space or deciding where not to spend your budget.
The objective is to make every pound of the design budget work harder.
If you're unsure where to start, you can also speak to a Project Advisor on HiiGuru before committing to a professional. A conversation can help you understand what kind of expertise your project requires and what to tackle first.
Planning an HMO refurbishment? Talk to an Interior Designer on HiiGuru today
Our Final Thoughts
The most profitable HMO design isn't necessarily the most luxurious. It's the design that understands the tenant, uses the available space intelligently and prioritises improvements that support rental demand.
Before spending money, ask:
"Will this make the property more desirable, more functional or more durable?"
If the answer is no, your budget may be better spent elsewhere.
For HMO investors, good design isn't decoration. It's part of the investment strategy.
Need help designing the interior of your HMO? Book a vetted interior designer for a 30-minute video call for just £35 ($45). With HiiGuru you can save time, avoid costly mistakes and bring your goals to life with experts by your side.