NAPA – North Adriatic Ports Association

A Beginner’s Guide for HMO Landlords.

Many landlords continue choosing HMO properties due to the agency’s numerous benefits and services. The most common one being that they are more profitable than other rental agencies. However, there are added demands meant to protect the renters from exploitation and other unforeseen challenges which the agency takes care of.
Below is a guide that will help you better understand the requirements and process involved as an HMO solicitors landlord.

HMO Property.

HMO is the acronym for houses in multiple occupations. It is a rented home or place shared among several people or households. The home can be owned by a single person, cohabiting couples or families. By fully understanding the available types of HMO housing, you will get to know if your house is HMO accredited.

The different types of HMO properties include:

1- A flat or house shared by three or more people from a minimum of 2 households. The communal areas of this house or flat are shared.
2-A home has the landlord( who is the owner) occupying an area with more than two tenants, and some regions are co-shared.
3-Some forms of student accommodation are also considered as HMO property. This is after the Housing Act 2004. Students who own privately owned property and each student treated as an individual household also receive HMO property benefits.
4-When a part of a building or an entire building is made of fully self-contained blocks that don’t qualify under the Buildings Regulations 1991, where more than 1/3 of the blocks are inhabited by short term tenants. This type of scenario is also commonly known as Section 257 HMO.

For a property to be referred to as HMO property, it must meet the following conditions:

1-Have more than two people who are residing in it.
2-It has to be the primary residential space for the tenants.
3-The tenants should pay for their rent.
The essential factor to remember is that for a property to be HMO property, the residents should not be related, and they share kitchen, bathroom and toilet facilities. It is an excellent clue to have separate tenancy policy agreements.

What Is A HMO license?

A landlord also has to find out if their property will require an HMO licence to operate. Most housing agencies will ask for an HMO licence to ensure that the property is legal and managed correctly.

You will have to get an HMO licence if:

1-The building is higher than three floors. The property should also house at least five or more people from 2 or more families. This regulation is also referred to as Mandatory Housing.
A report released by the council recently indicated that most of the HMOs were being mismanaged. However, since this is an additional form of licensing, the regulations vary depending on the local council. Visit your regional council offices to check if your HMO property will require a licence to operate. Other councils demand all private landlords to work with a licence.

Applying For An HMO Licence.

A property manager or a landlord can request an HMO licence from the local council office. To apply for the licence, they will be required to pay a non-refundable amount set by the relevant local authority. The amount is non-refundable irrespective of the outcome of the application process. The licence is valid for not more than five years.