What is a House in Multiple Occupation (HMO)?
A House in Multiple Occupation (HMO) is a property that is rented out to multiple tenants who are not related to each other. HMOs are a popular type of housing in the UK, and they can be a great way for landlords to generate income. However, there are some important regulations that you need to be aware of before you start renting out your property as an HMO.
What are the regulations for HMOs?
The regulations for HMOs vary depending on the size and location of the property. However, some general rules apply to all HMOs.
Types of HMO Licensing
Mandatory HMO Licensing: This applies to all HMOs that meet these criteria:
At least 5 tenants forming more than one household.
Tenants share facilities like toilets, bathrooms, or kitchen.
Additional HMO Licensing: Individual councils may impose additional licensing restrictions for smaller HMOs in certain areas. This exists to address specific local housing concerns.
HMO Regulations and Standards
Safety: Landlords hold a legal duty to ensure HMOs meet fire safety, gas safety, and electrical safety standards. This includes:
Installing and maintaining fire alarms/detection systems
Providing fire doors and protected escape routes
Annual gas safety checks by a certified engineer
Ensuring electrical systems are safe and inspected regularly
Amenity Standards: HMOs must provide adequate facilities for the number of occupants:
Sufficient kitchens, bathrooms, and toilets.
Properly functioning equipment and appliances.
Good state of repair throughout.
Management Standards: Landlords are responsible for:
Maintaining the property's condition, both inside and out.
Handling repairs promptly.
Addressing waste disposal and preventing overcrowding.
Dealing with tenant disputes or anti-social behavior.
Tenant Checks: While not always mandatory, it's highly advisable for landlords to perform reference and background checks on tenants to maintain a well-functioning HMO.
Important Notes:
Regional Variations: HMO regulations can be more stringent in particular councils or boroughs. Landlords must always check their specific local rules.
Planning Permission: In some cases, converting a standard property into an HMO will require planning permission from the local authority.
What are the pros and cons of being an HMO landlord?
There are several pros and cons to consider before you decide to become an HMO landlord.
Pros:
HMOs can generate more income than traditional rental properties.
HMOs can be a good way to provide affordable housing to people who need it.
HMOs can be a good way to diversify your rental portfolio.
Cons:
HMOs can be more challenging to manage than traditional rental properties.
HMOs may require you to make additional changes to your property, such as installing fire safety equipment.
HMOs may be subject to more regulations than traditional rental properties.
How can property management software help HMO landlords?
Property management software can help HMO landlords in a number of ways. For example, it can help you to:
Keep track of your tenants and their leases.
Manage rent payments and other financial transactions.
Perform maintenance and repairs.
Comply with HMO regulations.
Where to Find the Specifics
GOV.UK: The government's official site provides an overview of HMO rules: https://www.gov.uk/private-renting/houses-in-multiple-occupation
Local Councils: Your council's website will have detailed guidance and licensing application processes.
If you are considering becoming an HMO landlord, property management software such as Hoozzee can be a valuable tool to help you succeed.