Acronyms are fine just so long as you know what they mean – the problem with HMO insurance (and the reason I had to clarify it) is that it sounds like something to do with Her Majesty . . . and it isn’t, although I hope she’s got the right sort of HMO insurance on her multiple occupancy properties.
HMO insurance, or House in Multiple Occupation insurance is essential for many landlords and property letting companies, although many landlords don’t actually understand what it is and whether they need it.
If you are a landlord read on . . . if you’re not a landlord you should read on anyhow, you never know when you might need it.
If a property is rented in one of these ways it will probably need HMO insurance but do check the guidelines with your local council as the rules are different from area to area;
- A house or a flat which is rented to three or more separate tenants – unrelated tenants, it’s not the same if you let a house or flat to a family with a couple of children.
- A house or other property which has been refurbished to make bedsits and is home to three or more tenants (unrelated) with shared kitchen and bathroom facilities. This also applies to separate flats which have some shared facilities.
- Any property which is entirely taken over by flats but doesn’t meet with current regulations or where 33% of these flats have short term leases and tenants.
Properties which need HMO insurance are classed as the main residence of residents, even if the property is let to migrant workers or students.
Ask your insurance company about House in Multiple Occupation Insurance and see whether your property applies – if so you need to sort it out as soon as possible for your sake, the sake of your property and the sake of your tenants.
