What Are HMO Rental Properties And Do Landlords Need A License?

HMO properties provide quite a few advantages to landlords, so they are quite appealing. The profits from these properties are higher than most other rentals. It is true, however, that HMO properties come with more demands, and this is to protect renters. What do these requirements mean to you as the HMO landlord?

HMO Properties: What Are They?

HMO is an acronym for ‘houses in multiple occupation.’ This can mean a singular dwelling with multiple occupants or a grouping of households with various tenants. To discern if your rental property is HMO, you want to familiarize yourself more with the various types of HMO properties.

Types Of HMO Properties

One type of HMO property would be any type of dwelling consisting of three or more people that are from more than one household. This type of dwelling needs to have shared communal areas. A landlord’s home with additional tenants and communal areas is also an HMO property.

The Housing Act of 2004 ushered in certain student accommodations as HMO properties. The property must be privately owned and shared by multiple students who have exclusive use of the available accommodations. Section 257 HMO complicates matters even more but makes allowances for buildings that didn’t meet the requirements of the Building Regulations 1991 Act.

Put simply, HMO properties must have certain characteristics. Properties must be occupied by at least three people and must be their main residence. The rent must be paid by the tenants themselves. Additionally, remember that properties with multiple people who are not related are most often HMO rentals. If a property comes with separate tenant contracts, then it is likely also an HMO property.

HMO Licenses

Does your property need an HMO license? An HMO license can sometimes be required for certain multiple occupancy rental properties. Health and safety solicitors for companies. This license is necessary for governance matters and helps ensure that the HMO rental properties are managed properly.

Reasons An HMO License Is Required

Mandatory HMO licensing is the first rule of thumb you need to know about. A dwelling taller than 3 stories with 5+ occupants and people from more than one household falls into this category. Councils tend to believe that a large portion of HMO properties is not being governed appropriately, which would require additional licensing. Always keep an eye out for changing laws in your area.

If you are uncertain if your HMO property requires a license, be sure to check with authorities in your local area. There are areas where councils require every landlord that owns private rental property to apply for an HMO license. You certainly want to steer clear of any fines, and you want your rental business operating smoothly.

Applying For An HMO License

Both landlords and property managers are allowed to fill out an application for HMO licensing. These applications are available from your local council. A non-refundable fee is required to submit the application, and fees are individually set by local councils. If you are issued an HMO license, it is good for up to 5 years. Personal details of certain people affiliated with you and your rental business are going to need to be provided on the application so you want to get in touch with these people when applying.

Leave a comment