If you’re letting out a property to tenants who aren’t related to one another, the property may be classed as a house in multiple occupation.
Many landlords and property developers alike appear to be jumping on the HMO bandwagon given the lure of receiving multiply rent payments per month. If run correctly letting your property on a HMO basis can be very profitable, however it is imperative to understand the responsibilities that come with converting your property to that of a house of multiple occupation.
Where standard lets differ from HMO let properties is the additional strict procedures related to health and safety of the property, in addition, you may need a HMO license from the local council (it would be prudent to contact your local council to find out which HMO governing applies to you). Failing to follow these rules could mean fines of up to £20,000 for the landlord/property owner – to ensure your property adequately meets applicable regulations visit https://www.gov.uk/private-renting/houses-in-multiple-occupation for more info.
An HMO is normally a property in which unrelated tenants share facilities such as a toilet, bathroom, hand basin or kitchen.
A property may be classed as an HMO if any of the following applies:
- Three or more unrelated tenants form more than one household.
- Tenants have separate rental agreements.
- The property is a bedsit/hostel.
- Students live at the property.
- The building was converted into self-contained flats and doesn’t meet 1991 Building Regulations.
Once you have come to terms with the relevant regulations; next on the agenda is insuring the property. Many mainstream providers decline to offer terms on any HMO property, though you may not find this out until you have spent 10 minutes on the phone going through the quotation process!
We obtain a quotation for HMO properties the same way we obtain quotations for standard let properties; such is our relationship with our insurers. The only additional questions you may be asked is details of the cooking arrangements; such as confirmation cooking is only permitted in designated kitchen areas.
So if you’re looking for a free no obligation quotation for your HMO properties, feel free to contact the office, fill in a call back form or alternatively email: [email protected] – we’d be happy to provide you with a quotation.
