For those who don’t know, the HMO market is a great market to be interested in. HMOs (or Houses of Multiple Occupancy) are great for hauling in big rent sums and making savings for you or whomever is buying. However, ever so many HMO lack know-how and we don’t want that for you.
We want you to be those in the know, so Nick Fox is here today to share some HMO tips with you…
1. Know your licencing
Just as you need a licence to drive you need a licence to own an HMO. Each licence lasts 5 years but you need separate licences for each one you own, so make sure you get this in order early on. Your property is counted as an HMO if it applies to the below criteria…
- Your property is rented to 5+ and form more than 1 household.
- At least 1 of those tenants pays rent.
- And your tenants share facilities including kitchen and/or bathroom utilities.
Sometimes even with smaller properties an owner may still require a licence. This usually depends on the area in which the property lies, hence, always check if you require one before bringing in tenants. There is sanction for unlimited fines if you are found to be renting out unlicensed HMOs, so stay strictly away from doing so. Always check with your council.
2. Keep your housing conditions safe
As an HMO property owner (as with any normal property) you must always ensure that you keep the conditions of your large property both safe and habitable. Its size must be suitable for the number of occupants and the facilities satisfactory. Not considering this is considered in breach of landlord codes of practice. Nothing in your property should ever affect the well-being of your occupants.
3 Get the correct certification
In addition to normal living standards, other lawful procedures must be adhered to as well. These will be familiar to regular investors and include the likes of gas safety and electrical appliance safety certificates, which are to be sent to the council annually every year.
4 Keep your properties properly maintained
Along with the general running of a property, maintenance should also occur to ensure all habitants’ full safety. This concerns things such as installation of precautionary safety features (smoke alarms) and the following of any other conditions the council may add to your licence; this could concern ongoing improvement of home facility standards, or a like improvement. You are always informed of these extras when you apply.
Hope this has given you a bit more info on HMO rental. Good luck with any of your future dealings!
Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focuses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.
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