What is an HMO Rental?

HMO stands for houses in multiple occupations. This refers to houses that are let to a group of people who are not related. When this is the case, the landlord must ensure that the house complies with rules specifically for HMO situations. Read on for more details about HMO rentals.

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Definitions of HMO occupation

A house is an HMO rental if it is rented to three or more people that form more than one ‘household’ and these people all share a toilet, bathroom and/or kitchen facilities. A household is defined as a single person or a group of people who are married or living together, relatives or half-relatives, step-parents, and step-children.

An HMO occupation could be a large HMO or a standard HMO. A large HMO is defined as the property is at least 3 stories high with at least 5 tenants and joint facilities.

If you let an HMO, there are various important things to consider. The legal responsibilities you must adhere to include installing smoke detectors and checking the electrics every 5 years. There should be adequate cooking and washing facilities, shared facilities should be in good repair and the property should not be overcrowded. You can find out more about HMO properties with this 
government guide.

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Property management issues

In addition to making sure you adhere to the issues mentioned above, you must also make sure your property is approved for HMO status by the local council. The license lasts for 5 years in total and in order to get this license, you need to make sure the property is well managed and meets the standards required, and that the property is managed by a suitable person (i.e. a person without a criminal record and no breaches of legislation in the past).

When looking to rent a property, another good thing to do to make sure all aspects of the tenancy agreement are in place is to organize an inventory list. This can be done on paper or more usefully online, using a suitable property inventory software package.
Go to Inventory base for all your property inventory software needs, for example.

Make sure you have the right license before renting your house. If you rent to tenants without sorting out your HMO license first, you could be liable to pay a fine of up to £20,000.


Published by Sunil Pandey


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