Houses in Multiple Occupation (HMO)

If you, as a landlord, rent rooms or flats within a single property to a number of separate tenants, you may find that your property is considered to be a House in Multiple Occupation, or “HMO”.

A property is considered to be a HMO if it is let to three or more separate tenants, each of whom have their own household, whilst still retaining “common” areas, such as a living room, kitchen or bathroom.

For example, many landlords who let their properties to students may find that their properties are considered to be a House in Multiple Occupancy, as they are rented to a number of unrelated individuals who, whilst having their own designated room (or household), share one or more common or communal area within the property.

Whilst a purpose built flat or apartment complex would not be considered an HMO, despite potentially having common corridors or a reception area, properties that have been converted by a landlord or developer to maximise rental yield may be considered a HMO, depending on whether planning permission was sought and the type of property that was converted.

Specific legislation relating to HMO properties places a number of requirements on landlords to maintain their properties to a prescribed standard. Specific HMOs, such as those with five or more persons or those of three stories or more (including habitable basements, mezzanine floors or attics) require a mandatory licence, obtainable from the local authority, whilst all Houses in Multiple Occupancy must meet specific safety standards.

For example, landlords of a HMO must provide clearly marked fire escapes, alarms and fire fighting equipment, ensure that the property has an adequate, uninterrupted supply of water, electricity, gas (where applicable) and drainage. Gas equipment must also be checked and certified annually and electricity certification must be checked every five years.

The relevant local authority has to carry out a Housing Health and Safety Rating System (HHSRS) risk assessment on your HMO within five years of receiving a licence application. You must also carry out any works that are required as the result of a safety inspection.

If you are looking to cash in on your property, whether it is a House in Multiple Occupancy or otherwise, Swift Capital could help.

Swift Capital could offer you an instant cash lump sum for your property. We can take on any existing tenancy agreements that you may have, take care of all the paper work and pay any legal fees.

For a quick decision about cashing in on your property, get a free appraisal by completing our online form.