HMO refers to properties rented by multiple people or ‘households’ who share communal areas. To determine whether your property qualifies as an HMO, consider the following types:
A house or flat shared by three or more people from at least two households with communal areas.
A home occupied by the landlord with more than two tenants sharing spaces.
Privately owned student housing where tenants are treated as separate households.
Buildings converted into self-contained units that do not meet Building Regulations 1991, with more than a third of units under short tenancies (Section 257 HMO).
For a property to be classified as an HMO, it must:
Be shared by more than two people.
Be the tenants' primary residence.
Have rent paid by tenants.
Generally, if unrelated tenants share facilities such as a kitchen or bathroom, the property is likely an HMO.
As an HMO landlord, you must comply with additional legal requirements to avoid large fines. These include:
Displaying a notice with your contact details.
Ensuring the property meets health and safety standards, with records of inspections maintained.
Preventing overcrowding.
Meeting fire safety regulations, including smoke alarms, clear fire escapes, and fire risk assessments.
Maintaining water supply, drainage, and pipe insulation.
Conducting electrical inspections every five years and providing reports when requested.
Providing gas and electrical safety records within a week if requested by the council.
Keeping communal areas clean and safe.
Ensuring adequate bathroom and kitchen facilities.
Managing refuse disposal regularly.
Conducting a legionella risk assessment.
Obtaining specific HMO landlord insurance.
HMO tenants must also:
Allow reasonable access for inspections and repairs.
Avoid damaging landlord-provided items.
Follow fire safety and waste disposal guidelines.
Some HMO properties require a license to ensure they are managed correctly. You need a license if:
Your property has three or more stories and five or more tenants from at least two households (mandatory licensing).
Your local council enforces additional licensing for HMOs.
To check if your property requires a license, contact your local council, as some councils require all private landlords to be licensed.
You can request an HMO license application from your local council. Applications involve a non-refundable fee and last up to five years. When assessing an application, councils consider:
Whether the property meets space and facility requirements.
If the landlord or managing agent is ‘fit and proper,’ including checks for past convictions or discrimination.
Whether bedrooms meet minimum size requirements (since October 1, 2018).
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If your application is denied, you may nominate a different license holder (e.g., a property manager) or appeal within a month. Licenses can also be revoked if the council finds breaches of conditions. Violating license terms may result in fines up to £5,000, rent repayment orders, or legal consequences.
Operating an unlicensed HMO is a criminal offense, with fines up to £20,000 and the risk of repaying up to 12 months’ rent. Additionally, a Section 21 eviction notice will not be valid without proper licensing.
Being an HMO landlord comes with unique challenges, from compliance with legal obligations to managing multiple tenants efficiently. However, with the right knowledge and resources, you can ensure smooth operations and avoid costly mistakes. If you need assistance managing inventories and compliance tasks, No Letting Go offers advanced technology-driven inventory services to simplify the process. Luckily, we are experts in the field and are ready to help you to source, let and manage your property!