Letting out a property as a house in multiple occupation (HMO) has its benefits, and could be a good option for someone looking to invest in buy-to-let properties. Firstly, rental yields tend to be higher from HMOs than with a standard buy-to-let property, and the risk of not getting paid each month reduces as each tenant/household within the property pays their own rent separately.
However, HMO requirements and rules are slightly more complicated than with standard buy-to-let, so you must understand HMO requirements and your responsibilities as an HMO owner and landlord before renting out a HMO. To help you decide whether an HMO is the right option for you and ensure you set up your HMO properly, we have created a guide explaining HMO requirements in the UK, detailing all the things you need to know.
A house in multiple occupation has both of the following:
– At least 3 tenants that live there, forming more than one household
– The tenants share a toilet, bathroom, or kitchen facilities
A house qualifies as a large HMO if both the following apply:
A household is classified as a single person living alone or members of the same family who live together. This includes people who are married or living together, or are related in any way.
HMO licensing rules differ depending on which local authority the property is under. As a general rule, though, HMOs with five or more people who are not related and share a kitchen, toilet or bathroom require a licence. You can apply for a licence via your local authority. Find yours on the gov.uk website.
HMO licences are typically valid for five years, and you must renew your licence before it runs out. A separate licence is required for each HMO you run. Fees range from £500 to £1,500, depending on property location and council.
Always check your local council requirements, as rules vary across England, Wales, Scotland, and Northern Ireland.
Licensing essentials
Houses in multiple occupancy have specific requirements when it comes to minimum room sizes throughout the house.
Bedrooms/sleeping accommodation size requirements are as follows:
7 metres squared for HMOs with 5 or fewer occupants
HMOs have minimum size requirements for kitchens, too, based on the number of people living in the HMO. The minimum size requirements for an HMO kitchen are as follows:
8 metres squared for HMOs with 6 to 7 occupants
9 metres squared for HMOs with 8 or 9 occupants
10 metres squared for HMOs with 10 occupants
There are also requirements regarding kitchen equipment and appliances that must be supplied in HMOs. For every five occupants, the HMO must have:
There must also be a communal living room which is at least 13 square metres for HMOs with three people, with an additional one square metre for every additional occupant.
Bathrooms must be fitted with suitable and functioning locks, and any shared bathroom or toilet must be accessible from a common area.
As there are more people living within one property, HMOs are regarded as being at higher risk of fires than single-let properties. This means there are more comprehensive fire safety requirements in place to protect tenants. Landlords have a duty to take reasonable steps to reduce fire risks and ensure there are safe escape routes.
These requirements include:
If you are letting out individual rooms in your HMO, you are responsible for paying council tax and utility bills. If you let the property to a group of people, they should be jointly responsible for the council tax, unless they’re exempt (students, for example).
Usually, if you’re letting a property by the room, it’s easier to include the cost of utilities within the rent cost.
Generally, you do not need planning permission to convert a house into a small HMO, with 3-6 unrelated people living within it, unless you’re in an Article 4 direction area where different rules can apply. However, if you want to convert a property into a larger HMO with 7+ people (known as a sui generis), planning permission is usually required. As always, it’s best to check with your local council on this.
If you’re looking to convert your property into an HMO, EveryTrade can help. We specialise in the construction of high-quality HMO investment properties across the UK, designed to maximise returns and meet all regulatory standards. Our expert team has extensive experience in creating functional, durable, and aesthetically appealing HMOs that attract tenants and optimise occupancy rates. Read our HMO conversion guide for top tips on converting your property into an HMO.
We can help guide you on what is required, including planning permission and safety requirements. Our team have a strong focus on efficiency and attention to detail, delivering tailored solutions to suit your needs and budgets. Get in touch with the team today on 0161 464 7177 or info@tdgcontracts.com. Alternatively, you can fill in the form on our website or WhatsApp us directly, and a member of the team will be in touch to answer your query!