HMO Explained: House in Multiple Occupation

What is a House in Multiple Occupation?      

A House in Multiple Occupation (HMO) is a property rented out by at least three people who are from different households but share common facilities such as a kitchen, bathroom, or living room. But before you dive in, you must understand the legal landscape. 

Planning permission for HMOs

• Use Class: Start by determining the property's use class, which can vary by location. In England, many HMOs fall under Use Class C4, but local rules may differ.
• Article 4 Directions: Check for Article 4 Directions in your chosen area, which may require planning permission even for C4 HMOs.
• Planning permission: Larger HMOs or those outside the C4 use class often need planning permission. Submit your plans, ensuring compliance with local policies.
• Change of use: If the property was previously a single-family dwelling, you may need a "change of use" application. Safety and amenity standards are crucial. 

HMO licence requirements    

• Mandatory HMO licensing: Most HMOs require mandatory licensing. To qualify, your property must house three or more tenants from two or more households, share facilities, and collect rent. Licensing ensures safety and amenity standards are met.
• Additional licensing: In some areas, additional licensing schemes go beyond the mandatory requirements. Check if your property falls under such a scheme.
• Selective licensing: In specific areas, selective licensing applies to all privately rented properties, not just HMOs. This aims to improve housing conditions and reduce anti-social behaviour. 

Meeting Safety Standards 

Safety is non-negotiable. You must ensure that your HMO is safe for tenants by adhering to the below:

• Fire Safety: Install fire doors, alarms, extinguishers, and conduct regular fire risk assessments. Comply with the Fire Safety Order 2005.
• Gas and Electrical Safety: Schedule gas safety checks by Gas Safe engineers and electrical safety checks by a qualified electrician. Adhere to the Electrical Safety Standards Regulations 2020.
• Minimum Room Sizes and Amenities: Bedrooms must meet minimum size requirements, and provide adequate heating and ventilation.
• Management and Tenant Safety: Employ responsible property management, address tenant concerns promptly, and maintain clean and safe communal areas. 

HMO investment can be incredibly rewarding, but it comes with regulatory complexity. To succeed; understand planning and licensing rules, prioritise safety standards, and stay informed. Collaboration with local authorities and experts is key.