A Landlord's Guide

A Landlord's Guide to HMOs

Everything you need to know about House in Multiple Occupation properties — what they are, the rules that apply, and your responsibilities as a landlord.

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What is an HMO?

HMO is short for House in Multiple Occupation and is used to describe certain types of shared rented accommodation. It can apply to traditional flat and house shares — where a group of people who aren't related share a property — but can also refer to bedsits. If a homeowner rents out multiple rooms in their own home to lodgers, they could also have an HMO.

It's essential to understand what an HMO is, so you know whether you need to comply with specific rules (such as extra fire safety measures) or if you need an HMO licence — which you will if you have an HMO with five or more tenants.

In summary, any of the following is an HMO:

  • A house or flat share with three or more tenants who aren't related to each other
  • A house split into bedsits where tenants have their own rooms but share a kitchen or bathroom
  • Students living in shared accommodation with use of the whole house
  • An owner-occupier with more than two lodgers

Two unrelated people sharing a property won't count as an HMO. HMO status isn't dependent on planning permission — it's all about how the property is occupied. Adding a tenant (or an existing tenant asking their friend or partner to move in) could tip the property over the threshold.

Fire Safety

The most important requirement for HMOs is stricter fire safety measures. National statistics show that tenants are at least eight times more likely to die or suffer serious injury from a fire if they live in an HMO. If the HMO is large, the risk is even greater.

Today fire is just one of the 29 hazards that apply to all housing under the HHSRS risk rating scheme, so all rented properties are subject to checks to see if fire is a hazard. HMOs require more complex fire systems, so it's down to the landlord to arrange and pay for them. Failing to do this can result in enforcement action and even prosecution.

Contact your local Environmental Health Officer for an inspection — they'll advise what works you need and set up a consultation with a local fire officer. If there's a lot of work to be done you'll need to install temporary emergency detection until the work is carried out.

Example: A three-storey house would have a full panel-controlled smoke detection system in every room (except bathrooms). The property could also have mains-operated, interlinked detectors. Newer houses and conversions (post 1991) should already have smoke detectors installed, but if you let the house as an HMO you will need to add to the existing system.

Facilities

Minimum ratios for facilities work out at around one shared kitchen per five tenants and one shared bathroom per four tenants (one per five if the toilet is separate). The number and location of shared kitchens and bathrooms is also dictated by HMO legislation. Your local Environmental Health Officer can advise on what the standards are for your HMO.

1:5

Shared kitchen per tenants

1:4

Shared bathroom per tenants (1:5 if toilet separate)

Management Responsibilities

Whether you live in your HMO as a residential landlord or you let the whole house, you must have good management practices. The basics are set out in the Management of Houses in Multiple Occupation (England) Regulations 2006 and cover the manager's duties in respect of the HMO.

Safety measures

Fire escapes and detection systems in good order and repair, and sufficient protection from injury (potential falls from balconies, windows etc).

Water supply and drainage

Water supply to be maintained and protected from frost; tanks and cisterns to be covered.

Gas and electricity

Gas and electricity supplies to be maintained; gas safety certificates available for inspection; electrical tests every five years.

Common parts, fixtures and fittings

Staircases, passageways, corridors and entrances kept free from obstruction, in good decorative repair and safe working condition — including lighting, heating, toilets, baths, sinks and kitchen facilities.

Living accommodation

Each room let to be in good order and maintained as such. Rooms should be clean at the beginning of the tenancy.

Lighting, windows and ventilation

All windows and ventilation kept in good repair. Common areas should have adequate lighting.

Outbuildings and outside spaces

All outbuildings, walls and outside spaces repaired, kept clean and not a danger. Gardens must be safe and tidy.

Waste disposal facilities

Provide enough bins and storage for refuse prior to collection days.

Information to occupiers

The name, address and telephone contact number of the manager must be displayed in a prominent position in the house.

Duties of occupiers: It's the duty of all residents of an HMO to ensure the manager can effectively carry out their duties. All residents must allow access, provide information, comply with refuse arrangements, take care of fixtures and fittings, follow instructions about fire safety, and treat the property in a 'tenant-like' manner.

HMO Licensing

Licensing HMOs helps make sure that accommodation is safe, well-managed and of good quality. However, not all HMOs need a licence — it's usually only "large HMOs" in England or Wales that do.

A property is defined as a "large HMO" — and must be licensed — if all of the following apply:

It's rented to five or more people who form more than one household
Some (or all) tenants share toilet, bathroom or kitchen facilities
At least one tenant pays rent (or their employer pays it for them)

It's a serious offence to operate a licensable HMO without a licence and can carry a fine of up to £20,000.

There are cases where smaller HMOs rented to fewer tenants will need a licence, depending on the area — it's best to check with your local council.

The Three Types of Property Licensing

Mandatory Licensing

of large HMOs

Applies to large HMOs where there are five or more occupants forming more than one household. These HMOs must follow national minimum sizes for rooms used as sleeping accommodation, and landlords are required to follow council refuse schemes.

Additional Licensing

smaller HMOs

When a council imposes a policy that requires other sizes of HMOs to be licensed (like smaller HMOs with fewer tenants). Councils can bring in new rules at any time and ask for all HMOs to be licensed.

Selective Licensing

all rental properties

Another local scheme determined by borough that could affect all rental properties in the local area — regardless of their size, number of storeys or number of occupants.

Licence Requirements

A licence will normally be granted in properties that have:

Fire safety measures in place
Up-to-date annual gas safety checks
Electrical wiring and appliances checked and certified as safe
Adequate cooking and washing facilities
Appropriate refuse storage and disposal facilities
Communal areas that are clean and in good repair
No sign of overcrowding

You'll have to pay a fee for the licence, but it's valid for five years. To get one, you'll have to prove your management arrangements, that you're fit for the job, and that the HMO is in good order. You must also:

Send the council an updated gas safety certificate every year
Install and maintain smoke alarms

Need Help Managing Your HMO?

Our experienced team can guide you through HMO compliance, licensing and management. Get in touch to find out how we can help.