In recent years, houses in multiple occupation (HMOs) have become a popular option for landlords looking to maximise rental income. HMOs are properties that are rented out to three or more people who are not from the same household and share common areas like kitchens or bathrooms. While HMOs can provide a profitable investment opportunity, they are subject to strict licensing requirements that landlords must adhere to.
HMO licence issues can arise for a number of reasons, and it is crucial for landlords to be aware of what is required of them to avoid penalties or legal action. Here are some of the most common HMO licence issues and how to navigate them:
1. Failure to obtain an HMO licence
One of the most common licence issues is failing to obtain an HMO licence when it is required. In England and Wales, an HMO needs to be licensed if it is occupied by five or more people from two or more households and meets certain conditions such as having shared amenities. Similarly, in Scotland, an HMO needs to be licensed if it is occupied by three or more people from two or more households who share amenities. Failure to obtain the correct licence can result in fines of up to £30,000.
To obtain a licence, landlords will need to provide evidence that the property meets certain safety, hygiene and fire regulations. This may include providing smoke detectors in each room, ensuring all gas appliances are safe, and providing a written tenancy agreement. It is important to note that there may be different licensing requirements depending on the location of the property, so landlords should check with their local council to confirm what is needed for their specific property.
2. Failure to carry out safety checks
As well as obtaining an HMO licence, landlords are also responsible for ensuring that their properties meet certain safety standards. This includes carrying out regular gas and electrical safety checks, as well as ensuring that all furniture and furnishings provided meet fire safety regulations. Failure to carry out these safety checks can result in fines or even imprisonment in severe cases.
To ensure that safety checks are carried out on time, landlords may wish to hire a tradesperson to conduct an inspection and provide a safety certificate. This will provide evidence that the property meets safety regulations and can be shown to the local council as proof of compliance.
3. Overcrowding
Overcrowding is a common issue in HMOs, particularly in areas of high demand where landlords may be tempted to increase the number of tenants to maximise rental income. However, overcrowding can be dangerous and can lead to health and safety issues such as the spread of disease and increased fire risk.
Landlords should be aware of the maximum number of occupants that can safely live in their property and should not exceed this number. They should also ensure that each tenant has enough space, and that shared amenities like kitchens and bathrooms are large enough to accommodate the number of tenants living in the property.
4. Noise complaints
As HMOs are shared properties, there is a risk of noise complaints from neighbours. This can be particularly problematic in areas with a high student population, where tenants may be more likely to have parties or stay up late at night.
To avoid noise complaints, landlords can include a clause in the tenancy agreement that outlines the expected behaviour of tenants. This may include rules around noise, parties and keeping communal areas clean and tidy. Landlords may also wish to provide tenants with a way to report noise complaints anonymously, to encourage communication and ensure that any issues are dealt with promptly.
In conclusion, HMO licence issues can be complex and varied, and it is the responsibility of landlords to ensure that they are complying with all regulations. By obtaining an HMO licence, carrying out regular safety checks, monitoring occupancy levels and addressing noise complaints, landlords can ensure that their HMO is a safe and comfortable place for tenants to live, while also protecting themselves from legal action or fines.