HMO stands for House of Multiple Occupation. A property is an HMO if it is rented to at least three individual tenants from more than one household, and who share toilet, bathroom or kitchen facilities.
HMOs – Definition and Licencing Requirements
A household consists of 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.
By law, HMOs with five bedrooms or more require a licence from the local council which has to be renewed every five years. Normally, self-contained flats with five or more bedrooms and shared facilities, even when within a larger block of flats, would also be considered as licensable HMOs.
However, it’s important to note that in addition to these mandatory licencing requirements, some local authorities require licences for all HMOs, even when there are less than five tenants.
Under this definition, some self-contained flats comprising of five or more bedrooms and shared facilities within a larger block of flats would also be considered a licensable HMO. To qualify for a licence, an HMO must comply with legally enforceable safety and amenity standards, such as minimum bedroom sizes and communal spaces, adequate kitchen/bathroom facilities, and certification for gas, electrical and fire safety.
Local councils have to carry out a Housing Health and Safety Rating System (HHSRS) risk assessment on each HMO within five years of receiving a licence application. If the inspector finds any unacceptable risks during the assessment, a schedule of remedial works will be drawn up which must be completed within a given timeframe, if the HMO is to retain its licence.
Before purchasing an HMO, it’s therefore essential to check the status of the licence if it has five or more bedrooms, and whether any HHSRS assessment has highlighted essential works that need to be carried out.
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“New to the world of HMO investment, I could not have asked for a better team to help me navigate through sourcing, purchasing, refurbishment, renovations and letting. The trio partnership of Accumul8, Renov8 and Loc8me is a dream team. As a remote investor this has taken the stress out of venturing into this market. Always at hand when you need advice, Beth is always prompt and efficient in dealing with matters and getting back to you. Professional, polite and courteous at all times.”
“Dealing with Mike has been a breath of fresh air. Accumul8 know the market inside out, are enthusiastic, honest and have always delivered on promises. It’s never easy being a long way from a property but I am more than happy with those guys involved. They sold one property for exactly what we wanted and has sourced a builder to work on our other one which has produced a letting at a higher price than before, in the space of 3 weeks. I couldn’t be happier or more confident in what is being done on our behalf.”
“Mike Hughes provided outstanding service in the sale of our property in Lincoln. He went way beyond the duties normally expected of an agent and proactively anticipated and dealt with issues that would be raised. Mike has very good contacts with the local authority, which allowed difficulties to be resolved and at every stage he communicated most effectively with everyone. His professionalism is an example to others and I can strongly recommend him to whoever would benefit from his services.”
“I’ve worked with Mike on multiple properties – their service is simply first class. I’m always impressed by their expertise and their proactive approach. I would have no hesitation in recommending them to anyone looking for an invaluable partner in property.”
Adam
Founder of Horton’s Estate Agents
“The team at accumul8 and loc8me look after us extremely well. They’ve helped us build and manage a substantial portfolio over the last few years. We’re very grateful to Mike for his commitment to every aspect of every deal that he sources for us and look forward to doing business together for many more years to come.”
“Working with the team at accumul8 helped me expand into three new target cities within a 12 month period and add 120 beds to my student property portfolio. This would have been impossible without their sound advice, ability to source assets at speed, and capacity to undertake and manage two large refurbishment projects. Each acquisition and renovation project came with it’s own challenges which Mike and the team walked me through. As an investment professional myself, I can wholly recommend accumul8 to investors looking for a highly effective and client focussed service.”
“I contacted the team at accumul8 with some general questions surrounding HMO property – I wasn’t sure whether it was the right investment for me. Through their informative communication and proven track record, they gave me the necessary confidence in the student market. By only bringing properties tailored to my investment profile, they clearly listened to my requirements and since initial contact, I have purchased my first HMO through them and am about to complete on a further two.”
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