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Understanding HMO licences – A landlord’s responsibilities

A house in multiple occupation (HMO) licence is required when a property is rented out to five or more people who form more than one household and share facilities like bathrooms and kitchens.

In some cases, an HMO will be required even if the property is rented out to fewer than five people, so it is advisable to check with the local council to see what the specific criteria for an HMO is.

The licence, which is valid for five years, ensures that the property is managed properly and meets certain safety standards.

The importance of an HMO licence

It is important that landlords are renting out a property under an HMO license if the renting conditions warrant one, as operating without a license can lead to unlimited fines.

The recent case of Lee Challinor, a landlord in Stoke-on-Trent, highlights this importance. Challinor was fined £11,800 for operating an unlicensed HMO and breaching several management regulations.

His property was found to be in poor condition, with substandard bathrooms, a fly infestation, and accumulated waste.

This incident highlights the critical responsibilities that landlords have when managing HMO properties.

Compliance with safety standards

Landlords must ensure their properties meet specific safety standards. This includes:

Installing and maintaining smoke alarms
Ensuring electrical installations are safe
Providing safety certificates for all electrical appliances when requested
Sending the council an updated gas certificate every year

Additionally, landlords must ensure they renew their license before it runs out. They will also need a separate HMO for each HMO they operate.

Regular maintenance and inspections

Regular property inspections are crucial to identify and address any issues promptly. Landlords should ensure that common areas and shared facilities are clean and in good repair.

The build-up of waste and sludge in Challinor’s property’s backyard was a clear sign of neglect in this area.

Tenant rights and responsibilities

Landlords must respect tenants’ rights and provide a safe and habitable living environment. Tenants, in turn, have a responsibility to take care of the property and report any issues to the landlord. In this case, it was a tenant’s complaint that initiated the council’s investigation.

The role of the National Landlord Investment Show and Tenancy Deposit Scheme

Events like the National Landlord Investment Show provide landlords with valuable information about property investment and management, including HMO regulations.

Additionally, the Tenancy Deposit Scheme protects tenants’ deposits and helps resolve disputes over their return, ensuring fair treatment for both landlords and tenants.

The case of Lee Challinor is a cautionary tale for landlords. It highlights the necessity of obtaining an HMO licence, ensuring that safety standards are met, and maintaining properties adequately.

If you are a landlord and would like more advice about HMO licenses, please contact our team today.