House in Multiple Occupation (HMO) for a Bigger Rental Income

Posted under Advice by Michael

An HMO- House in Multiple Occupation- is a property shared by three or more tenants. It brings in a bigger income for the landlord. It also brings more responsibilities for the landlord.

An HMO is a residence where the tenants share an entire house or flat and share a kitchen, bathroom or toilet. It is the tenants’ main or only residence.

All HMOs are subject to Management Regulations and Inspections. This ensures that the landlord manages the property well and keeps it safe

The landlord has to
•    Make sure the property is safe and liveable
•    Make sure the number of occupants is suitable to the size of the property.
•    Register with the local authority. Provide details when there is a change of occupancy and details of the residents.
•    Keep fire escapes, passageways and stairways clear of any clutter.

Tenants who are a nuisance to the other tenants or neighbours, who damage the property or fail to pay rent, can face eviction.

Before taking in multiple tenants, the landlord should consult with the local council about the requirements he has to meet. Contact the local authority about rules and regulations for HMOs.

The landlord will need a special insurance policy.

The landlord or the manager has to be in control of the occupancy of the HMO at all times.

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