Managing an HMO comes with extensive responsibilities for landlords, who must navigate a wide range of regulations. This includes meeting strict health and safety standards, staying compliant with legal requirements, and ensuring their properties adhere to all necessary licensing rules.
What is an HMO?
An HMO (House in Multiple Occupation) is a property shared by three or more tenants from two or more households. There are additional legal definitions provided under the Housing Act 2004, covering aspects like shared facilities and specific types of buildings.
Licensing for Large HMOs
A large HMO is defined as having five or more tenants from two or more households sharing facilities. These properties require a licence from the local housing authority. However, purpose-built blocks with three or more self-contained flats however are exempt from mandatory licensing.
Licences are issued by the local authority and typically last for five years. If you own multiple HMOs, each property requires a separate licence.
Additional Licensing Requirements
Local authorities can impose additional licensing requirements for HMOs and selective licensing for private rental properties within designated areas. It is essential that landlords check with their local housing authority to determine if these apply to their properties.
HMO Management Regulations
All HMO landlords must comply with the Management of Houses in Multiple Occupation (England) Regulations 2006. The Regulations cover key responsibilities including:
- Ensuring that tenants are provided with details of the property manager
- Safety and fire measurement
- Water and drainage system maintenance
- Utility maintenance
- Maintenance of the common parts of the property
- Maintenance of living accommodation
- Providing waste disposal facilities
- Duties of occupiers of HMOs
Non-compliance with the Regulations can result in hefty fines of up to £30,000, or even prosecution. Landlords may also face rent repayment orders or banning orders for persistent non-compliance.
Managing an HMO isn’t just about renting out rooms – it’s about navigating a complex landscape of licensing requirements, planning laws, and health and safety standards.
Explore our extensive range of Property documents, including a range of comprehensive HMO resources to help you stay ahead of Regulations.