A Guide to HMOs

What is an HMO?

HMO stands for House in Multiple Occupation. It refers to a property occupied by three or more individuals from different households who share essential facilities such as a kitchen, bathroom, or toilet. The government defines a household as either a single person or members of the same family living together. For example, three unrelated individuals in separate rooms constitute three households, while two couples living together represent two households.

HMOs can take various forms, often appearing as shared accommodations where tenants are not related or properties divided into several rooms. To qualify as an HMO, tenants must pay rent, and the property must serve as their primary residence. A large HMO specifically accommodates at least five tenants from multiple households sharing communal facilities.

Regulations with HMOs

If you're considering letting an HMO, it's crucial to understand your legal responsibilities as a landlord. In addition to standard obligations, HMO landlords face additional duties, including:

• Maintaining and repairing communal areas and facilities.
• Installing adequate fire safety equipment, such as mains-powered smoke alarms and heat detectors in kitchens.
• Conducting annual gas safety checks.
• Ensuring the property is not overcrowded.
• Providing suitable cooking and washing facilities for the number of tenants.
• Supplying sufficient waste bins based on tenant occupancy.
• Checking electrical installations every five years.
• Completing a fire risk assessment—contact your local council for guidance.
• Ensuring accessible escape routes are kept clear at all times.

These legal obligations apply regardless of what's stated in the tenancy agreement. In 2018, new regulations introduced minimum bedroom sizes for HMOs requiring a licence. All large HMOs must be licensed, meaning if your property accommodates five or more unrelated tenants sharing facilities, you must apply for an HMO licence.

Some councils also require smaller HMOs to have a licence, which specifies the maximum number of occupants and its validity. It's advisable to check with your local council regarding registration requirements, as some councils mandate all landlords to register their properties.

To apply for an HMO licence, you can do so through your local council, either personally or via your letting agent. Remember to inform relevant parties, including the property's freeholder, tenants with long-term tenancies, and your lender if you hold a buy-to-let mortgage. Licensing fees vary by council and are non-refundable, regardless of the outcome. Non-compliance can lead to severe penalties, making it vital to adhere to these regulations.