If you don’t already know, HMO stands for ‘House in Multiple Occupation’ but what does this actually mean and what does it entail for you as a landlord? Read on for our handy guide.

 

The Basics

A HMO, otherwise known as a ‘houseshare’ describes a property which is rented out to more than three people who are not classed as a family or part of one ‘household’  but live independently whilst sharing a kitchen or a bathroom or other facilities.

 

The Rules

In the UK, if you are a landlord who rents out a HMO to more than five people within the same property, a special license is required which is valid for five years and is known as a large HMO. The requirements for a large HMO state that more than five people must live independently within the property, share a bathroom or kitchen facilities and at least one person within the property pays rent.

Along with your regular duties as a landlord, there are certain rules as a HMO landlord you must adhere to including keeping the property in good repair, ensuring there are adequate refuse facilities for the number of people occupying the property, making sure all gas, electricity and safety procedures are up to date and that the landlord or the overall manager of the property has no criminal record.

Sometimes a license is still required for renting out a HMO to fewer people so it is always worth getting advice from governing bodies in your area.

Becoming a landlord of a HMO without a license where one is required is a criminal offence.

 

The Benefits

The most obvious benefit of leasing a property as a HMO is the higher returns on rent as well as a high demand for shared accommodation due to people seeking affordable living. The property will always be partly occupied and would only require finding a new tenant for a vacant room, reducing the possibility of a completely vacant property and ensuring there is always a rental income regardless.

 

The main disadvantage to becoming a HMO landlord is the overall managing of the property is more demanding as there are more tenants and the turnover of occupants is higher in the long run.

 

We hope you have found this guide useful. If you need more help as a landlord, a homeowner or as a first time buyer, feel free to contact us for a chat with a member of our experienced team.

 

Receive a free valuation on your rental property today.

 

Looking to sell your property? Take a look at the stunning properties that we currently have for sale in Nottingham, Long Eaton, Arnold, and the surrounding areas.