Houses in Multiple Occupations are famous among landlords due to higher rental yield. However, its management comes with legal responsibilities, including needing a proper license. You must know what to do if you want to convert your property or have already managed one. We’ll break down the process, the types of licences required, and how to ensure you meet all legal obligations.
Why Is It Important?
HMO licensing ensures shared homes meet minimum safety and living standards. It’s for the protection of the tenants and landlords. Local councils require them to regulate properties with multiple occupants. They keep the place safe, well-maintained, and suitable for communal living to avoid hefty fines or legal action. So, know your responsibilities as a landlord.
Additionally, it provides residents with access to good-quality, safe homes. From fire safety to adequate residential space, the requirements are designed to improve the overall standard of rented properties.
Types of Licences Explained
Mandatory HMO Licence
This is required for properties with five or more tenants who form more than one household and share communal facilities. If your place meets these criteria, you must apply for it, regardless of location.
To obtain this, you must comply with all safety regulations and have adequate amenities. The council checks your area to ensure that your property meets all necessary standards.
Additional HMO Licence In some areas, councils introduce supplementary certifications for smaller properties or those with fewer tenants.
These certifications are designed to tackle local issues related to poorly managed accommodations. The criteria vary by council, so it’s important to check with your local authority.
Even if your HMO houses fewer than five occupants, you need to get this authorisation if your property is located in an area with an active licensing scheme.
Selective Licence
This regulation applies to HMOs and all rented properties within a designated area with high levels of private renting. It addresses concerns about poor housing conditions, anti-social behaviour, or low demand for shared homes. If your property is in this location, apply for this certification, even if it is not an HMO.
How to Apply for an HMO Licence
The application process is straightforward if you’re prepared. Here’s how to get started.
Step 1: Check the Local Requirements
First, check the specific licensing conditions in your area. Each council sets its own rules about which properties need a licence. It’s important to clarify which ones you require.
Step 2: Fill Out The Form
Complete the online application form for HMO licences. It asks for detailed information about the accommodation. Provide the number of tenants, room sizes, and safety features. Be prepared to provide documentation.
Step 3: Pay the Fee
The council affects the cost of the licence. The property size and local authority’s guidelines affect the price, too. Factor them into your budget when you set up your HMO.
Step 4: Prepare for Inspection
The council inspects the area after submitting your application. They’ll check if your HMO meets the standards. If any improvements are needed, they will give you time to make the necessary changes before you get approval.
Step 5: Get Approved If you meet all the
requirements, you’ll get a license. It lasts for five years and needs renewal to continue the legal operation of the HMO.
What Happens if You Don’t Have the Right Licence?
Failure to obtain the correct HMO certification can lead to severe consequences. Local authorities can issue fines, and landlords may face prosecution. Additionally, tenants who live in an unlicensed property can apply for a Rent Repayment Order. With this, you must repay up to 12 months’ rent.
Beyond the financial penalties, your tenants are at risk if you don’t have a licence. Unlicensed properties are unlikely to meet the necessary safety standards, which could result in injury or damage. Secure the proper authorisation to protect your occupants and your investment.
Stay Compliant
After you receive your HMO licence, your responsibilities don’t end there. You must maintain the house to meet the required standards throughout the license duration. You must also carry out regular inspections to ensure all safety equipment is in good working order and communal areas are kept clean.
Your local council may conduct periodic checks to ensure your compliance and prompt resolution of any issues. Keep up with maintenance and safety checks to build a positive relationship with your tenants.
FAQs
Can I appeal if my licence application is denied?
Yes. Your local council should provide details on how to proceed and what information they need to reconsider your request.
How long does it take to get a licence?
The process can vary from several weeks to a few months. Its duration depends on how quickly your local council processes the application and conducts any necessary inspections.
Do I need to renew it, and how often?
Yes, HMO licences are valid for five years. To continue the legal operation of your property, renew it before it expires.
Keep Your HMO Legal and Profitable
Landlords need to understand licensing. It’ll help maximise their returns and stay compliant with the law. Apply for the correct authorisation, meet safety standards, and maintain your property well. This way, you’ll avoid fines, protect your tenants, and ensure a steady rental income stream.
Do you have any experience with HMO licensing? Share your thoughts and tips in the comments, and don’t forget to like and share this guide with other landlords who might find it helpful!
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