HMO Property

HMO properties offer numerous advantages and benefits to landlords and property managers. They also provide better profit returns than other rental options available in the real estate market. However, special regulations have been set to ensure the renters are protected and well taken care of at all times.

This article is helpful to landlords and property managers as it has all they need to know concerning HMO properties, licences and their application process.

HMO Property

HMO is used to mean houses in multiple occupations. It is a rented building or place that is shared among several households or people. The home can accommodate a single human, cohabiting couples or several families. To help you identify if your house is HMO property, you must understand the various types of HMO property housing. A trading standards solicitor is something you may be looking for when considering HMO law.

Types of HMO Properties:

1-A space or building that is used by three or more persons from at least two different families. The inhabitants of the home share the common areas available.
2-A building that also has the landlord as one of the inhabitants. The building also has to have more than two occupants, and some of the areas are shared by all occupants.

After the passing of the Housing Act 2004, most students accommodation facilities were placed under HMO. When students decide to share a privately owned building, and the students are treated as separate tenants and exclusively use the property, the building is considered an HMO property.

When a part of a building or the whole building is made up of blocks that don’t meet the Building Regulations 1991 and that has more than a 1/3 of the blocks with short term residents, the building is referred to as Section 257 HMO.

For a building or property to be recognised as an HMO property, it must:

1-Have more than two persons who are living in it.
2-Must be the major home of the tenants in it.
3-The tenants must be able to pay the rent accommodation fee charged by the landlord or property manager.

For buildings or accommodation centres to be recognised as HMO property, the residents have to share the bathroom, toilets, kitchen facilities and not from the same family. It is a good idea to have different tenant agreement forms.

HMO Licence

The landlord or property manager has to determine if his house or building requires a licence of operation. The licence issued by the local authorities ensures the accommodation centres are well taken care of, and the local authorities recognise the residents.

Your property will need an HMO licence if:

1-The building has more than three floors.
2-The property houses five or more than five occupants from two or more different families. This type of licencing is commonly known as mandatory licencing.
It is believed that most of the HMO housing options are not well-taken care of, and hence strict measures have to be put across to protect the tenants.

The additional requirements and licence vary depending on the regional authorities. Check with your authorities to see if your property requires approval to operate, as it will help you avoid unnecessary fines.

How To Apply For A HMO Licence

A property manager or a landlord should request for the application forms from the local authorities. They will also be required to pay a non-refundable fee regardless of whether the process will be approved or not. The licence is to be used for a period of not more than five years and then renewed.