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You are here: Home1 / Landlord & Tenant2 / Houses in Multiple Occupation (HMO) – Guide for Landlords & Property...
Guide to Houses in Multiple Occupation (HMO)

Houses in Multiple Occupation (HMO) – Guide for Landlords & Property Investors

Houses with multiple tenants, often falling in to the Houses in Multiple Occupation (HMO) category are unsurprisingly growing in popularity all the time. One of the most popular examples of such multiple occupancy accommodation is student property – where a large house or residential property is divided into rooms so that several rent paying students can live there.

For a property to be formally listed as a House in Multiple Occupation (HMO) there must be rentable rooms or flats within one single property.

Criteria for Houses in Multiple Occupation

Going into further detail, a property can be listed as a House in Multiple Occupation if it is let out as a main home to more than three people.

The people living at the property will also have to share a kitchen and bathroom in order for it to fit into this category.

A HMO must also have a licence if it is more than three storeys tall and is occupied by five people or more who form more than one household.

Improving Rental Incomes with Houses in Multiple Occupation

Of course, the reason for the popularity in such multi-let properties is the fact that a property investor or buy-to-let landlord can receive more income from the same property… and from a tenant’s point of view, the rents can be reduced as more people are chipping in to meet the costs.

Houses in multiple occupation appear to be a real win-win situation for both landlords and tenants.

Legal & Regulatory Compliance Issues for HMO

From a landlords or property investors perspective however, even though there may be some good income prospects from owning such a multi-tenanted HMO property, there is still a lot of work to do when it comes to regulatory compliance issues, building maintenance and ensuring that general standards are maintained throughout.

As a buy-to-let landlord, irrespective of the property type, there is a duty to ensure that the health and safety of your tenants is given top priority.

More Information about Houses in Multiple Occupation

For additional information concerning houses in multiple occupation Investment Property Partners have prepared a number of additional guides for property investors covering the HMO license application process, Housing Health and Safety Rating Systems (HHSRS) and managing tenants in multiple occupancy property.

If you are a landlord, property owner or investor and require further information or support on property management issues like those covered here please contact us to discuss how Investment Property Partners can help.

Specialist Property Investment & Landlord & Tenant Solutions

As a leading independent property investment specialists Investment Property Partners offer expert advice and support to clients across our specialist areas of expertise helping them to achieve their investment objectives.

If you are a property investor searching for investment or development opportunities, or property management solutions please contact us today to discuss how Investment Property Partners can help you.

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Further reading…

More information about Houses in Multiple Occupation (HMO)… here →

More information about private renting and houses in multiple occupation from the UK Government… here →

Tags: Buy to let property, HMO, Houses in multiple occupation, Landlord & Tenant
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