HMO - a simple solution to an uncomplicated problem

Recently introduced legislation concerning HMO has led to confusion and uncertainty. Contrary to popular belief these changes are not there to make life difficult, or claw in further funds from landlords.

What is a HMO?

If you let one of the following house types it's a House in Multiple Occupation (HMO):

An entire house or flat let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet.

A house converted entirely into bedsits or other non-self-contained accommodation and let to 3 or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities.

A converted house containing one or more flats which are not wholly self contained (i.e. the flat does not contain a kitchen, bathroom and toilet) and which is occupied by 3 or more tenants who form two or more households.

To be an HMO the property must be used as the tenants' only or main residence should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges.

Why is HMO licensing being introduced?

HMO licensing aims to raise management and amenity standards in the rented property sector. It will 'weed out' unscrupulous and rogue landlords.

How do I know if I need a license?

If you answer yes to the following questions, you may need a license:

· Are you a landlord?

· Do any of your properties have three or more storeys?

· Do any of your properties have five or more unrelated tenants?

How much will a license cost?

As a guide, a six-bedroomed HMO over three storeys will cost around £620. However, this may vary slightly from council to council.

How do I apply for a license?

Following our three-step guide, applying for a license is as easy as other daily routines such as applying for credit cards.

(1.) Log on to the website for the local authority where your HMO is located.

(2.) Complete the on-line HMO application form.

(3.) Print off the form and return it to the local authority offices - full contact details will be given at the end of the form

In summary, the key facts you need to know about the new legislation are:

· If you rent a property which has three or more storeys, and five or more unrelated tenants, you may need a license.

· Licensing is aimed at raising management and amenity standards in the rented property sector.

· Landlords of licensable HMOs will benefit from support from local authorities. This will help them manage their properties more efficiently.

· An HMO license will normally last for up to five years.

· Landlords and agents should contact the local authority in which a property is situated to find out the cost of the license fee.

Flats and Bedsits (Homes in Multiple Occupation)

Information about safety standards in flats and bedsits 

Buildings divided into bedsits and flats occupied by more than one family can pose risks for people who live there.

More people die in this type of property than any other type of housing.

To reduce dangers, we enforce a range of standards that landlords can be required to meet. These include:· Fire and adequate space standards · Alarms · Emergency lighting · Fire escape routes · Amenities including adequate kitchens and bathrooms

Some work has been done by local authorities to try and identify all such properties, and some councils are in the process of carrying out a full inspection programme. Those properties identified, have been risk assessed based upon whether the property is a bedsit, a shared house or self contained flat etc; number of occupants; whether there are fire precautions and what type of management and level of amenities there are.

A 50% grant, to a maximum amount of £5000 for fire precautions and disrepair may be available to landlords of HMOs from local authorities. Contact you local council for further information.