Is your rental property a HMO?
Landlords renting a property to several tenants either room by room or as one joined tenancy need to be aware that it could actually be a HMO. Some HMOs require a license other do not. Unfortunately HMO regulations are not that straight forward and things can get a little confusing.
Councils use different explanation to describe a HMO
The Borough of Lambeth says:
A House in multiple occupation (HMO) is a house or flat which is occupied by three or more people who do not live as a single household (such as people in a family relationship) and where they share one or more basic amenities, such as a bathroom, toilet, or cooking facilities…
Tower Hamlet describes the following, as an HMO:
An HMO is a building or part of a building (such as a flat) that: Is occupied by more than one household which share or lack an amenity, such as a bathroom, toilet or cooking facility; or Is occupied by more than one household and which is a converted building, but not entirely into self contained flats (whether or not some amenities are shared or lacking); or Is converted self contained flats, but does not meet as a minimum standard the requirements of the 1991 Building Regulations, and at least one third of flats are occupied under short tenancies…
For the Borough of Tower Hamlet, HMO is a building occupied by more than ONE household rather than ‘THREE OR MORE people who do not live as a single household’ as stated by some other councils. This can be really confusing.
It is important to know, that the fact that the property could be an HMO, doesn’t mean it must have a licence. The HMO license requirements will depend on how many stories the property has, the quantity of sharers, whether they are related or not, and other factors that can be even more confusing since each council has a different definition of HMO. Even solicitors can give you different versions on how and when you need to apply for a Licence.
The LLAS (London Landlord Accreditation Scheme) provides one day courses to help Landlords understand the regulations. If you are a landlord it is highly recommend that you attend one of these, even if you don’t run an HMO. This course will give the fundamental knowledge any Landlord should have interns of responsibility and legal requirements about letting a property.
Another way is to ask your council direct. Landlords often hear horrifying stories of massive £20,000 fines or more if operating an HMO without a license. This has recently been change to unlimited fines meaning in theory the council could take away your property if found guilty. However it is important to understand that the these fines are issued to either repeat offenders or Landlords who have left their properties in extreme negligent state putting their tenants’ safety at risk. The council is actually keen to work with landlords to get the property license in place and improve standards for their tenants.
If in double about HMO requirements it is best to contact the local authority. The advice is free and they are here to help. The LLAS day course should be attended by landlords either way. However doing nothing could relate into heavy fines which could get very costly. Better to open up and learn and follow property HMO procedures.
