HMO (House of Multiple Occupation) is essentially a house which is occupied by sharers (3 or more forming at least two family groups) on a tenancy sharing common facilities such as the kitchen, bathroom, dining area and garden etc.. Individual flats, self contained rooms or En Suites ( a room with a shower room and toilet) can also be classified as HMO’s if they are rented to people who are not all part of the same family but share e.g . meters for gas, electricity and water.
You only need to obtain a license for your HMO if ALL of the below are true:
- There are 2 or more unrelated people living in the house.
- People share certain common facilities, such as kitchen, bathroom, and toilet with others.
- It is at least 3 storeys high.
This is where most of the misconception lies. The emphasis is that three condition have to be met before the property becomes subject to a license. In any case check with your local council.
There are regulations in place that are consistant across England and Wales with a few exceptions in Scotland, these include
- Installment of working fire alarms and carbon monoxide detectors
- clear fire exist
- hygienic facilities, an operational heating system and water supply, waste disposal
- PA testing of electrical goods if offered
- minimum room sizes
There are also new regulations which came into force quite recently in the form of Article 4. However, these regulations do not apply to all councils or areas. We would advise you to enquire about this with your local council before considering to let your house on a room-by-room basis.
The management of HMOs can be time consuming and costly. It is therefore critical to have the right systems in place, work with the right people and have the experience that is takes to make consistent profits each month.
We at Magnat Property Solutions believe that we have developed specific management processes and systems that allow us to consistently make profits so that we can return guaranteed rents to our landlords. We also believe that the pressure on housing in the UK will not disappear for years to come making HMO’s a viable long term option for professionals to live in. We want to ensure we provide good quality housing for people and are passionate about being part of making a difference in peoples lives.