Houses in Multiple Occupation (HMOs)

Houses in Multiple Occupation (HMOs) are a popular choice for landlords looking to maximise rental income. However, HMO properties come with additional legal responsibilities, particularly around licensing. Whether you’re a seasoned landlord or new to HMOs, understanding the licensing process and requirements is essential to stay compliant and avoid costly penalties.

In the remainder of this article, we’ll explore the key aspects of HMO licensing, including how to apply, typical requirements, legal obligations, and tips to ensure your property is license-ready.

What is an HMO, and When Do You Need a Licence?

A House in Multiple Occupation (HMO) is defined as a property rented out by at least three unrelated tenants forming more than one household who share facilities such as bathrooms or kitchens.

Under the Housing Act 2004, certain HMOs require a licence:

• Mandatory HMO Licensing: Applies to properties with five or more tenants forming two or more households.
• Additional Licensing: Local councils may require licensing for smaller HMOs under their specific schemes.
• Selective Licensing: Some councils may also extend licensing to other rented properties in specific areas.

Key tip: Always check with your local authority to determine if your property falls under these categories, as rules may vary.

How to Apply for an HMO Licence

Applying for an HMO licence typically involves:

1. Contacting Your Local Authority
   Visit your council’s website or contact their housing department. Each local authority has its own application process and fees.
2. Completing the Application Form
   You’ll need to provide:
   • Details of the property (layout, amenities, and safety features).
   • Personal and business information.
   • Evidence of compliance with health and safety standards.
3. Paying the Application Fee
   Fees range from £500 to £1,500+, depending on the council and property size.
4. Property Inspection
   The council will inspect the property to ensure it meets licensing requirements.

Typical HMO Licence Requirements

To obtain a licence, your property must meet certain standards, including:

• Room Sizes
  Minimum bedroom sizes are typically 6.51m² for a single adult and 10.22m² for two adults sharing.
• Fire Safety Measures
  • Properly maintained smoke alarms.
  • Fire doors and clear escape routes.
• Gas and Electrical Safety
  • Annual gas safety certificates.
  • Five-yearly Electrical Installation Condition Reports (EICR).
• Waste Management
  Adequate bins and waste disposal arrangements.
• Facilities
  Sufficient bathrooms, toilets, and kitchen facilities for the number of occupants.

Consequences of Non-Compliance

Failure to obtain or comply with an HMO licence can result in severe penalties:

• Fines
  Landlords can face unlimited fines for renting out an unlicensed HMO.
• Rent Repayment Orders
  Tenants can reclaim up to 12 months’ rent.
• Banning Orders
  Persistent offenders may be banned from letting properties altogether.

Tips for Preparing Your HMO for Licensing

1. Consult Your Local Authority Early
   Speak to your council to confirm the property meets their licensing requirements.
2. Hire a Professional
   Consider engaging an HMO consultant or property manager for advice.
3. Conduct a Self-Assessment
   Check fire safety, room sizes, and amenities before applying.
4. Plan for Inspections
   Keep all documentation (gas safety certificates, EICR, tenancy agreements) organised and accessible.

How to Comply with HMO Licence Conditions

Once you receive your licence, compliance is crucial to avoid enforcement action. Key steps include:

• Regularly maintaining safety equipment (e.g., smoke alarms, fire extinguishers).
• Adhering to maximum occupancy limits.
• Renewing your licence before it expires (usually every five years).
• Informing the council of any significant changes, such as new tenants or structural alterations.

Final Thoughts

Navigating HMO licensing can seem daunting, but with the right preparation and knowledge, it’s manageable. By understanding your responsibilities and maintaining compliance, you can avoid penalties and maximise the potential of your property.

All Content supplied by Lifeboat Lettings specialists in HMO management across Kent

We can help supply drawings required for HMO's and we work closely with Lifeboat Lettings