Have you come across the term “HMO” in the UK housing market and wondered what it stands for? Look no further! This article dissects everything you need to know about HMO properties, exploring what they are, who they’re for, and the regulations surrounding them.
What is an HMO?
HMO stands for “House in Multiple Occupation.” In simpler terms, it’s a property rented out to at least three tenants who form more than one household and share toilet, bathroom, or kitchen facilities. This can encompass various types of dwellings, from shared houses and converted flats to hostels and employee accommodation.
Key things to remember:
- Household definition: A household comprises family members living together or single individuals living alone.
- Number of tenants: The minimum requirement for an HMO is three tenants from different households.
- Shared facilities: Access to toilets, bathrooms, or kitchens must be shared among tenants.
Would you like a free valuation on your HMO property? Call our Lettings Manager Beth Roberts on 01273 724000 or click here.
Types of HMOs:
- Small HMOs: These house 3-4 tenants and are often converted houses or flats.
- Large HMOs: With 5 or more tenants, these require specific licensing in England and Wales.
Who lives in HMOs?
HMOs cater to diverse demographics, including:
- Students: Often seeking affordable and social living arrangements.
- Young professionals: Sharing costs and enjoying convenient locations.
- Low-income individuals: Offering accessible housing options.
- Immigrants and new arrivals: Providing temporary accommodation.
Benefits of HMOs:
- Affordability: Sharing costs makes rent cheaper compared to individual flats.
- Social aspect: Fosters a sense of community and shared living experiences.
- Convenient locations: Often situated in city centres or near universities.
Things to consider before renting an HMO:
- Living conditions: Assess space, privacy, and shared facilities thoroughly.
- Tenancy agreements: Understand your rights and responsibilities clearly.
- Management: Ensure clear communication and responsiveness from the landlord.
- Licensing: Verify if the property has the necessary HMO license (applicable for large HMOs).
Are you looking at purchasing a HMO investment and want advice? Click here for a free 30 minute buy to let consultation.
Regulations and licensing:
HMOs are subject to specific regulations depending on their size and location:
- England and Wales: Large HMOs require a license from the local council.
- Scotland: HMOs with three or more unrelated tenants need registration.
- Northern Ireland: Specific licensing requirements apply based on the number of tenants and facilities.
How can Harringtons Lettings help rent out your HMO property?
Harringtons Lettings have over 30 years of experience in the rental Market. We are an independent agency, unlike large chains, our focus is providing a personalised service to our landlords and tenants with our extensive local market knowledge.
Our Lettings Manager Beth comes from one of the biggest names in HMO Lettings in Brighton and has a vast knowledge of the market. We price our properties competitively to give you the best return on your investment and use a range of sources to keep on top of the ever-changing demographic so we can get ahead of the trends within the HMO market.
With free photography and video tours of each property tenants get a great overview of the property before they even step foot in the door, our knowledgeable viewing guides will be on hand to point out the key features of your property to get it let as soon as possible for ultimate peace of mind.
We have great relationships with the local universities and often attend open days to talk first hand with students and their parents about their responsibilities as tenants and our property management team is second to none when it comes to the upkeep of your property.
With varying levels of management service from Fully Managed to tenant find only we offer packages to suit all levels of involvement from our landlords.
We stay up to date with compliance and legislation to take all of the hassle out of renting. We can offer advice on refurbishment and internal layout to get the most out of your space so your investment is in safe hands with us.
If you’re thinking of renting out your HMO property call our Lettings Manager Beth Roberts on 01273 724000 today