Avoid Hefty Fines: Learn About the Essential Licensing Requirements
As a UK landlord, you must be aware of two key certificates: the Selective License and the HMO License. In this article, we’ll dive into the details of the HMO License and why it’s crucial for landlords renting out shared accommodations.
What is an HMO?
According to UK regulations, a House in Multiple Occupation (HMO) is a property rented by at least three people who are not from the same household but share common facilities like the bathroom or kitchen.
Who qualifies as a household?
A household can consist of:
A single person.
Members of the same family living together, including spouses, partners (including same-sex relationships), relatives, or step-relatives (e.g., grandparents, aunts, uncles, siblings, step-parents, and step-children).
If you’re renting out a property in England or Wales as an HMO, you must check with your local council to determine if a license is required. (Scotland and Northern Ireland have separate regulations.)
When is an HMO License Mandatory?
An HMO License is required for large HMOs, which meet the following criteria:
Rented to five or more people from more than one household.
Tenants share essential facilities like toilets, bathrooms, or kitchens.
At least one tenant pays rent (or has it paid on their behalf).
Key Points:
An HMO License is valid for five years and must be renewed before expiry.
Each HMO property you manage requires a separate license.
How to Apply for an HMO License
The requirements for an HMO License vary by local council. You can check the specific requirements for your area by entering your property’s postcode at the following link:
Find Your Local Council for HMO Licensing
You’ll also find contact details for your local council, including email addresses and phone numbers.
Application Options:
DIY Application: You can apply directly through your local council’s portal.
Managed Application: Your property management company can handle the process on your behalf, though this may involve additional service fees.
What Documents Do You Need to Apply?
To apply for an HMO License, you’ll need to provide:
Annual gas safety certificates submitted to the council.
Evidence of installed and maintained smoke alarms.
Electrical safety certificates for all appliances as required.
Additional Requirements:
The property must be suitable for the number of occupants, based on size and available facilities.
The landlord or managing agent must be deemed “fit and proper” (e.g., no criminal record or breaches of landlord laws).
Some councils may impose additional conditions, such as upgrading facilities to meet higher standards. These requirements will be outlined when you apply.
What Happens If You Don’t Apply for an HMO License?
Failing to apply for a required HMO License can have severe consequences. Tenants can report landlords who neglect this obligation, and renting out an unlicensed HMO can result in unlimited fines.
To appeal any conditions set by the council, you can use the following link:
Housing Tribunals Appeal
Conclusion
The consequences of non-compliance with HMO regulations are severe, including substantial financial penalties. If you’re a landlord managing an HMO property, ensure you understand and fulfill all licensing requirements to safeguard your investments and avoid legal risks.
Need help managing your rental properties? Contact Let UK Home today, and let us handle the complexities for you with 24/7 professional support.
