Are you looking to significantly increase your rental yield? HMO’s, or Houses in Multiple Occupation, are becoming increasingly popular as an effective way to boost rental income. HMOs provide an opportunity to rent out individual rooms in a single property, and the rental income from the collective units can be much higher than from a single tenancy.
HMO properties are a popular choice for tenants who are looking for an affordable and convenient home. However, it is important that you understand their rights as tenants in order to protect their interests and ensure that they are treated fairly.
This blog will discuss the minimum legal requirements and tenants’ rights to maintain a healthy and legal relationship between landlord and tenant.
Tenants Right to Safe and Secure Accommodation
Tenants in HMO properties have the right to a safe and secure living environment. This means that the landlord should ensure that all safety regulations and standards are met. We have included the living and saftey standards below.
Bedrooms
- Minimum for a single bedroom: 6.51 square metres
- Minimum for a double room occupied by two people: 10.22 square metres
- These sizes refer to the floorspace available where the floor-to-ceiling height is over 1.5 metres
Shared Living Areas
At a minimum, there must be:
- At least one shower and toilet for every four tenants
- Adequate cooking facilities
- Waste disposal facilities outside the building
A communal living area is not legally required.
Safety Regulations
- Smoke alarms in every room, as well as heat detectors and fire extinguishers in kitchens
- Gas safety checks carried out annually
- Electrical safety checks carried out every 5 years
- Prompt repair of any damage to communal areas
Tenants Right to Fair and Reasonable Rent
We all want the highest profit margins possible. However, tenants are entitled to a fair and reasonable rent price, similar to properties in the same area. Tenants can always check the local rental market to make sure that they are not being charged an unreasonable amount and it lowers the chances of your property sitting empty for long periods.
Before you determine your rent price, do your due diligence and calculate all of your monthly expenses associated with the property. This includes potential costs such as maintenance fees, insurance premiums, and any additional costs involved in the upkeep of the property. It is essential to use the local rental market to determine your most profitable yield while still being fair to potential tenants.
How to Check the Market Rate:
- Research the rental market in your area. Look at rental listings to get an idea of what similar properties are being offered for.
- Speak to local estate agents or letting agents and ask them for advice on the rental market in your area.
- Compare the rental rate you are being offered with the rental rates of similar properties in the same area.
By doing the research, you can make sure you are charging a fair and reasonable rent price
Tenants Right to Privacy
Tenants in HMO properties have the right to privacy and should not be disturbed by their landlord or other tenants. The landlord should respect their tenant’s right to privacy and should not enter the property without permission or enter the tenant’s room without permission.
Tenants should be free to enjoy their home without fear of intrusion or interruption. Landlords should also ensure that other tenants respect each other’s privacy and do not disturb each other.
In Conclusion
Tenants in HMO properties have many rights that they should be aware of. These rights include the right to fair and reasonable rent, the right to privacy, and the right to a safe and secure living environment.
As a landlord you have the responsible to make sure these rights are met to maintain a healthly relationship between you and your tenants. Ultimately, your goal should be to foster a respectful and beneficial relationship between you and your tenants, while still upholding your rights and obligations as the landlord, this will enable you to have a strong and consistent yield on your investment.
Still not sure which HMO license your property requires? Don’t worry, we’ve got you covered. Our blog HMO Licensing Explained outlines all the details you need to know about which licenses are required and when they must be obtained.
Recent Comments