HMO Property
There is much frustration among landlords and agents as to what constitutes a HMO Property (house in multiple occupancy). There are many rules landlords must follow when managing an HMO, particularly if it is licensed. Here we look at exactly what an HMO is, and the most common questions surrounding it.
What exactly is an HMO?
HMO is a term used to define accommodation that is owned by a private landlord and shared among several people. There are a range of different types of accommodation that could fall under an HMO property. It all depends on how many people are living there, and how the living arrangements are set out. For example, people from one ‘household’ such as a family would not be an HMO. Generally, an HMO is where there are three or more unrelated tenants in a property who make up more than one household with a shared toilet, bathroom or kitchen. Examples of these could be:
- Several bedsits in one building
- A hostel
- Halls of residence (private)
- A shared house
- A block of converted flats
- Individual shared self-contained flats.
What is the difference between an HMO and a non-HMO property?
The biggest difference is that HMO tenants can escalate issues to the local council who are more likely to take action than over a non-HMO property. The Environmental Health Department of every local council is responsible for taking up complaints about health and safety in HMO’s and has the power to compel landlords to rectify problems. The council can prosecute both the landlord and any managers that they have working for them and can take over the management of the property themselves.
Do I need an HMO licence?
Any large HMO must be licensed. So, if your property is let to five or more unrelated tenants, and has shared tenant facilities, you must apply for an HMO licence. This can be applied for through your local council. You can apply for it yourself, or you can ask your managing agent to do it on your behalf.
There used to be an extra requirement for a property to be classed as a large HMO – it needed to have three storeys. But from 1 October 2018, this was changed, so it’s important to make sure you’ve checked whether your property is classed as a large HMO under the new rules.
Its worth remembering that some councils require all landlords to be registered, regardless of whether their properties are HMO’s. If you’re in doubt, check with your local council before proceeding. It could help making any costly mistakes.
Take a look at our fully managed HMO services.