If you rent a property to multiple tenants who form more than one household and share facilities, it may be classed as a House in Multiple Occupation (HMO). And depending on the type and size of the HMO, you may need a license.
What is an HMO?
An HMO is a property rented by at least 3 people who aren't from the same family but share a toilet, bathroom, or kitchen.
Licensing Requirements:
- Mandatory Licensing: Applies to HMOs with 5 or more tenants, sharing facilities.
- Additional Licensing: Some local authorities have additional licensing schemes that apply to a wider range of HMOs.
Why Licensing Matters:
- Legal Requirement: Operating an HMO without the required license is a criminal offence.
- Ensuring Standards: Licensing helps ensure HMOs are safe and well-managed.
The Tenancy Agreement's Role:
The tenancy agreement doesn't replace the need for an HMO license, but it's part of the picture:
- Accurate Information: Your tenancy agreement needs to accurately reflect that the property is an HMO, if applicable.
- Tenant Details: The agreement will list all the tenants, which is relevant information for a licensing application.
- Legalmaster Support: Legalmaster can help you create an agreement that accurately describes the tenancy arrangements, which is essential information for any HMO application.
Key Steps for HMO Landlords:
- Determine if your property is an HMO.
- Check with your local authority about licensing requirements.
- If a license is needed, apply for one.
- Ensure your tenancy agreement accurately reflects the HMO status.
HMO licensing is a complex area. Legalmaster ensures your tenancy agreements are clear and accurate, reflecting the specific circumstances of your lettings and supporting your overall compliance efforts.
