Do Landlords Need A Licence For HMO Properties?
If you’re involved with property management and investment, it’s essential to understand the specific requirements and obligations that come with different types of properties. Among these, Houses in Multiple Occupation – or HMO for short – stand out for their unique legal and regulatory framework. In this article, our block insurance experts are exploring the licencing requirements, application processes, and responsibilities that come with managing such properties.
What Are HMO Properties?
A HMO, or House in Multiple Occupation, is a property rented out by at least three people who are not from one ‘household’ (e.g., a family) but share facilities like the bathroom and kitchen. Popular examples of this are student accommodations or professionals renting rooms within a larger property. This classification encompasses various living arrangements, requiring landlords to meet specific standards to ensure the safety and wellbeing of tenants. This can include taking out HMO landlord insurance, ensuring that the property meets fire safety standards, and obtaining appropriate licencing.
Legal Requirements for HMO Licensing
The need for an HMO licence primarily hinges on the HMO property’s size and the number of occupants. Generally, a licence is mandatory if the property is occupied by five or more people forming more than one household. However, some local authorities may impose additional requirements, making it essential for landlords to verify the specific regulations applicable in their area. The licence confirms that the property is suitable for a certain number of occupants and that the landlord is fit to manage an HMO.
Types of HMO Licence
There are two main types of HMO licence in the UK:
- Mandatory HMO Licence: Required for properties of at least three storeys high, housing five or more people in more than one household.
- Additional Licensing: Some councils require an HMO licence for properties that don’t meet the mandatory criteria, aimed at raising standards in smaller HMO properties.
Application Process for HMO Licences
Applying for an HMO licence involves submitting an application to the local council, accompanied by a fee and supporting documents that prove the property meets the required safety standards. This process includes fire safety measures, adequate cooking and washing facilities, and proper management of the property. Landlords should also be prepared for their HMO property to be inspected by the council to ensure compliance.
Standards & Obligations of HMO Landlords
Landlords of HMO properties must meet higher standards than those renting out non-HMO properties. These include ensuring the proper maintenance of the building, providing adequate fire safety measures, and ensuring the gas and electrical appliances are safely installed and maintained. Landlords must also ensure that communal areas and facilities are clean and in good repair. Compliance with these standards is crucial for the wellbeing of tenants and the legal operation of the property.
Other Considerations for Landlords
In addition to licencing, landlords should consider HMO landlord insurance to protect their investment and ensure they’re covered for any property damage or liability claims. These policies are specifically designed to meet the unique needs of HMO properties, offering peace of mind to landlords and their tenants.
For more information on HMO or block of flats insurance, contact us today. Call us on 0800 731 6242, email info@flatsdirect-uk.com, or fill out our quick block insurance online quote.