Houses in Multiple Occupation (HMO)
Over recent years we have all seen a decline in affordable housing within the West Midlands. More and more people are finding it difficult to save for a mortgage and therefore are looking to rent through private landlords.
However, even in the private sector properties are scarce and landlords are struggling to keep up with demand. One solution many landlords have chosen is to convert their properties into HMO properties (Houses in multiple occupation).
Below, we have briefly explained what HM properties are and outlined the rules and regulations landlords have to follow in order to let out their properties.
However, even in the private sector properties are scarce and landlords are struggling to keep up with demand. One solution many landlords have chosen is to convert their properties into HMO properties (Houses in multiple occupation).
Below, we have briefly explained what HM properties are and outlined the rules and regulations landlords have to follow in order to let out their properties.
What is a House in Multiple Occupation?
A House in Multiple Occupation is a property which houses three or more tenants forming more than one household and/or a property where tenants share toilets, bathrooms and kitchen facilities.
For example, if a landlord owns a four bedroom property and rents it out to two separate families, each having their own parts of the house, it becomes a HMO property.
For example, if a landlord owns a four bedroom property and rents it out to two separate families, each having their own parts of the house, it becomes a HMO property.
How can you become an HMO landlord?
Converting your property into a HMO opens up your options to a new and profitable sector. Once your property has met all Government regulations your property can be let to students, local authorities and/or housing associations.
Becoming a HMO landlord comes with added responsibilities but can be worth it, if done properly.
You would need to apply for a special licence though some local authorities may require additional licences to ensure your properties meet their requirements.
If becoming a HMO landlord interests you, please following the link below for more information.
www.gov.uk/private-renting/houses-in-multiple-occupation
Becoming a HMO landlord comes with added responsibilities but can be worth it, if done properly.
You would need to apply for a special licence though some local authorities may require additional licences to ensure your properties meet their requirements.
If becoming a HMO landlord interests you, please following the link below for more information.
www.gov.uk/private-renting/houses-in-multiple-occupation
The Local Authority, Your HMO and You
Once you have applied for a HMO licence, the Local Authority will visit your property. They will be checking to make sure your property has the right number of amenities, (bathrooms, toilets and kitchen facilities) available for the amount of people you want to let your property to. They will advise you on any changes you need to make to ensure your property qualifies as an HMO.
The Local Authority will also look at you as a landlord, regardless of whether you are a seasoned landlord or a novice. They want to make sure you are someone capable of managing a HMO property. Will you be able to maintain the property to a good standard? Do you have the knowledge and the resources? Do you understand the regulations and will you maintain them?
Make sure you are prepared to answer these questions and in some cases, provide proof.
The Local Authority will also look at you as a landlord, regardless of whether you are a seasoned landlord or a novice. They want to make sure you are someone capable of managing a HMO property. Will you be able to maintain the property to a good standard? Do you have the knowledge and the resources? Do you understand the regulations and will you maintain them?
Make sure you are prepared to answer these questions and in some cases, provide proof.
I don't want a HMO anymore!
HMO properties can be a challenge and therefore, not for everyone. Instead of having one tenant in your property, you will have multiple and unfortunately they may not get along, which will cause problems within the household. You will also have maintenance responsibilities and regulations to adhere to. HMO properties can be stressful, which is why you may change your mind.
If you decide you no longer want to let your property as an HMO, the first thing you will need to check are the end dates of your tenant's shorthold tenancy agreements. The termination of each agreement must be carried out in accordance wit ht e Housing Act 1988. The eviction process can be costly, landlord insurance can help cover legal fees but it is also advisable to consult a solicitor. As with any legal process, if your manage any part of the process incorrectly, you could be accused of committing an offence and your eviction process could be voided.
If you decide you no longer want to let your property as an HMO, the first thing you will need to check are the end dates of your tenant's shorthold tenancy agreements. The termination of each agreement must be carried out in accordance wit ht e Housing Act 1988. The eviction process can be costly, landlord insurance can help cover legal fees but it is also advisable to consult a solicitor. As with any legal process, if your manage any part of the process incorrectly, you could be accused of committing an offence and your eviction process could be voided.
HMO properties can be a lot of work but if they are maintained to a good standard, regulations are adhered to and you keep up to date with legislation, it can be very rewarding.
If you have a property you think would be suitable for HMO purposes or would like to find out more information, please do not hesitate to contact us using the form below.
If you have a property you think would be suitable for HMO purposes or would like to find out more information, please do not hesitate to contact us using the form below.