The demand for more private rented housing means that many people are now more inclined to live in Houses of Multiple Occupancy (or HMOs), where other households live in the same property and share the facilities. Students are well known to live in HMOs, and as rent prices are increasing, young professionals are now also looking for HMOs too so that they can split the rent between them and save some money. If you are thinking about expanding your property portfolio to include HMOs, then here are some tips for you!
What is an HMO?
The government defines a House of Multiple Occupancy as place where “There are 3 tenants living there, forming more than 1 household [and] you share toilet, bathroom or kitchen facilities with other tenants.” They go on to say that a household can be defined as “either a single person or members of the same family who live together. It includes people who are married or living together and people in same-sex relationships.”
How to become an HMO Landlord
If you have decided that you would like to rent your property out as an HMO, then firstly you need to register the property as a HMO to the local council. The council will only let landlords rent out a property as an HMO if the property is large enough for all the intended occupants and the property is properly managed. Depending on the area you may have to also apply for a license, and you will also need to contact your landlord insurance provider to make sure that your policy covers HMOs.
Becoming an HMO landlord means that you will have a larger amount of responsibilities when it comes to the upkeep of the property. All HMO landlords have to make sure that proper fire safety measures are in place, the property is not overcrowded, there are adequate cooking and washing facilities, communal areas and shared facilities are clean and in good repair, and there are enough rubbish bins. This may mean that keeping your HMO properties maintained may take up more of your time, so you need to make sure you are up to the challenge first!
Houses of Multiple Occupancy can be a great addition to your property portfolio, and whilst they may take up more of your time to keep up to standard, they can also provide extra income due to the multiple rent payments!