A House in Multiple Occupation (HMO) varies in definition depending on which country you are in. For landlords, freeholders and property professionals, understanding the nuances of HMOs is crucial, as they come with specific legal obligations and compliance requirements.
254 HMOs, which means that if your property is rented to 3 or more tenants from more than one household, who share essential facilities.
257 HMOs, which means buildings that:
It is common to delve into the complexities of proving that a converted building meets the relevant building regulations, which can often be a convoluted and costly process.
Means that if your property is rented to 3 or more tenants from 3 or more households who share essential facilities.
HMOs are not always licensable, and conforming to the relevant legislation is not optional if you don't require a licence. Local councils run HMO, Additional HMO, and Mandatory licensing, and sometimes HMOs are covered by Selective licensing. HMOs can also require HMO, Article 4 HMO or Sui Generis Planning, or if you have the evidence and meet the requirements, you can apply for Lawful use. With this in mind, it is vital to check with your local authority to determine the requirements applicable to your specific property or contact Yuno for support.
HMOs can vary widely in their configurations, common terminology includes:
Properties rented by groups of friends or colleagues who share communal spaces and facilities, all on the same contract and no locks on bedroom doors.
Individual rooms rented out separately on individual contracts, generally with locks on bedroom doors, with tenants often sharing kitchen and bathroom facilities. If there are locks on bedrooms doors but all on the same contract it will still be seen as a bedsit HMO.
Structures converted into flats or studios that may not meet current building regulations, known as Section 257 HMOs. This is the Freeholders responsibility.
Licensing requirements for HMOs depend on the number of occupants:
Required for properties occupied by five or more individuals forming more than one household, sharing facilities. In Wales only, the property must be 3 or more stories, and in England only, there is an exemption for flats that have 3 or more flats in a purpose-built building.
Local councils may require licences for smaller HMOs or specific property types and converted buildings within designated areas.
Local councils may require licences for smaller HMOs or specific property types within designated areas.
To apply for an HMO licence, landlords must contact their local council, provide necessary documentation, and pay the applicable fees. It’s essential to consult local regulations, as licensing criteria can vary.
Landlords and Freeholders must adhere to stringent regulations to ensure tenant safety, including:
Non-compliance can result in significant fines, legal action, and reputational damage.
Effective HMO management involves:
Of course, you don’t need to split a property up to be an HMO, professional investing in an HMOs can be lucrative, though it requires careful consideration of factors such as:
Conducting thorough research and seeking professional advice can help determine if an HMO aligns with your investment goals.
Navigating the complexities of HMO regulations can be daunting. Yuno offers comprehensive services to assist landlords, freeholders and property professionals in achieving and maintaining compliance, including:
By partnering with Yuno, landlords, freeholders, and property professionals can ensure their HMO properties meet all legal requirements, providing peace of mind and safeguarding their investment.
With over 15 years immersed in the property sector, Paul’s expertise is unparalleled. From his beginnings as a developer in Chelsea to pioneering the innovative Yuno property compliance model, his journey showcases a deep understanding of the industry’s intricacies.
Having been a slave to the beast of responsibility & liability, Paul decided to partner with property legal professionals & experts to create a platform that would empower all with the knowledge and means to set themselves free once and for all. With Yuno, you’re not just complying; you’re thriving.
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In 2016, Russell’s entrepreneurial spirit led him to raise an impressive $8 million for the establishment of Paymenta, a cutting-edge platform specializing in foreign exchange and remittances.
Russell is a proud graduate of Oxford, where he earned his PGDip in Software and System Security. His expertise and passion for technology make him an invaluable asset to Yuno, ensuring our platform remains at the forefront of innovation.
Lori brings over two decades of expertise in estate agency and the private rental sector to the Yuno team.
As a valued advisor, Lori plays a crucial role in shaping Yuno’s compliance solutions, ensuring they meet the needs of our clients in an ever-evolving industry. Her wealth of knowledge and commitment to excellence make her an integral part of our mission to simplify compliance in property management.
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With a keen eye for new legislation and obligations, David excels in advising and litigating complex property issues. He has a knack for finding innovative solutions within existing laws to tackle unique client challenges.
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Kate’s dedication to improving the property industry aligns perfectly with our goals, and her guidance helps us continually evolve to meet the needs of property professionals and consumers alike.