What are the rules for letting a House in Multiple Occupation?

 

 

 

Thinking about what to do with your vacant property? Letting it out as a House in Multiple Occupation, widely known as an HMO, gives you the opportunity to make more from your assets. In the following guide, we’ll outline everything you need to know to get started.

What counts as an HMO?

A property is classed as an HMO if at least three people live there, forming more than one household. Facilities like the kitchen, bathroom and toilet are shared. 

You’ll need to apply for an HMO licence if you’re thinking of letting out to five people or more, when it formally starts to be considered a large HMO. The cost of licences can vary, but they typically last five years.

What do landlords need to know?

There are specific rules, regulations and procedures that HMO landlords need to follow, so it’s always best to make sure you’re well-researched beforehand. We’d recommend making sure you’re familiar with all of the following aspects:

- Regulations and insurance
Building regulations are crucial.  You must follow the rules and regulations for HMOs as outlined by the government. These include a valid gas safety certificate, an electrical certificate, current and working EPC and smoke alarms. Any unacceptable risks like asbestos or radiation must be sorted immediately.

You’ll also need relevant landlord insurance to keep you covered throughout the duration of every tenancy. This should keep you protected should any disputes arise between tenants or local authorities.

 - Licensing
Ultimately, the local council will decide whether or not you’ll be able to let out your property as an HMO. You can use planning portals to submit, review and track your application, but it’s always worth maintaining regular communication with the council, too.

Councils implement selective licensing schemes for properties that aren’t subject to mandatory licensing, including blocks converted to self-contained flats. This is undertaken to improve regulatory standards of the private rental sector. 

 - Rules for letting
There are a few crucial rules you should follow as a landlord.

One of the most important is that rooms must not be shared, unless agreed upon beforehand. In large HMOs, it’s a good idea to make tenants aware of this before they sign any agreements. You can only house the maximum number of persons specified in the licence.

Furthermore, no persons under 12 must share a bathroom unless with a family member. Only bedrooms are allowed as sleeping space, and all rooms must have access to natural light and ventilation.

 - Room sizes
If you’re letting out an HMO, rules also apply to the size of each bedroom. These include the floor area, which must be more than 4.64 square metres for any room. Bedrooms must be more than 6.51 square metres for any tenants aged 10 and above. 

Starting out as an HMO landlord can be daunting, and we know it’s a significant investment, too. The best approach is to work with integrity and to make sure you complete all the relevant paperwork, meeting expectations at all times.