When looking to rent your property, you will find that there are a range of options available to you when it comes to finding the best suited tenants. If you are looking to let your property to a group of different tenants that are not members of the same family, a HMO licence may be the option for you.
HMO stands for house in multiple occupation and will apply to your home if at least three tenants live there at one time and if toilet, bathroom or kitchen facilities are shared amongst tenants. Larger HMO’s apply if your home is at least three storeys high, with a minimum of five tenants living there sharing toilet, bathroom or kitchen facilities. HMO’s are for homes being shared by more than one household.
A common example of a HMO property would be one in which students rent for their accommodation during university term time. Properties that let to students must obtain a HMO licence in order to do so, as each individual student is classified as one household.
To establish whether your property is considered a HMO, you will need to find out whether there will be more than one household living there. A household is considered to be either a single person or members of the same family who live together. This can include:
Therefore, if there are a group of people living in one property however have no family link, they are each considered as a household and will not be able to rent together in a property that does not have a HMO licence.
If you need a HMO licence, you must contact the council to request one. You can either apply for the licence yourself or if using a managing agent, they are also able to apply for one for you.
You’ll be charged a fee which is set by the council. A separate licence is required for each HMO you run, and is valid for a maximum of five years. It is your responsibility to renew your licence before it runs out as you can be charged an unlimited fine for renting out an unlicensed HMO.
The council has to carry out a Housing Health and Safety Rating System (HHSRS) risk assessment on your HMO within 5 years of receiving a licence application. If the inspector finds any risks during the assessment, you must carry out work to eliminate them before your application can proceed.
Any changes that happen to either your property or your tenants must be reported to the council. You must tell the council if:
For any further information or advice, please feel free to contact us!