HMO Basics
What is an HMO?
A HMO basically is a house of multiple occupancy.
There's two types of HMO's;
- Mini HMO, and
- Large HMO
Let’s look at mini HMO’s first.
That is where three or more people in two households, not related, live in the same property. So an example is three nurses who are not related living together would be a HMO. That's the basic unit.
These mini HMOs may not be required to be licensed by your local counsel, you need to check with your local counsel to see what their local guidelines are.
Large HMOs will have to be licensed.
Now on all HMOs that are licensed there is no floor limit now. They could be all in a bungalow, and you're still a HMO. Don't get confused because it used to be three floors or more. It doesn't matter now.
Your council is the best place to start. There's usually a HMO officer, he/she is the best person to talk to. Get all the latest updates from them.
On large HMOs you'll have to do fire regulations. You need to make sure you have risk assessments done. That means making sure the fire exits are always available, you have thumb locks on all external doors, the communal area is clean, tidy and there's no combustible material left lying around like cardboard, paper, that sort of thing.
You can be licensed as a landlord or your agent can be licensed. That means that you are classed as a fit and proper person by the council. This is one of their main criterias when granting a license, if you are not a fit and proper person you will not get a license.
If you try to run a HMO without a license, the fines are considerable - so don't do it.
If you are running an HMO without a license, you'll find that you probably won't be able to evict your tenants, because it's invalid when you serve a section 21.
So the first place to check is your counsel and find the HMO specialist, liaise with them, even if it's for a mini HMO. Just in case things change with the counsel then they've got a designated area where any house of multiple occupancy must be registered.
David Muir
Connect Properties Limited
07776117774