Brief Introduction on Houses with Multiple Private Tenants

The private rental sector is a market that is continuing to grow, as the buying market goes through regular fluctuations. With comparably lower deposit costs and monthly payments, tenant demand has been quite overwhelming, resulting in Landlords having a wide variety of prospective tenants interested in their property.

However rent prices have been rising for a few months now and it is harder for single people, without buddies to live with, to secure a rented property just for themselves. So the alternative for them is to rent just one room in a house share or house in multiple occupation (HMO). This reduces their expenses and landlords can benefit from purchasing properties with a large number of bedrooms which could be too large for most families.

What Is a HMO?

HMO are properties let to at least three tenants who are not related and share common living spaces and bathrooms. The types of properties that can qualify as a HMO include:

• Bedsits
• Shared Houses and Flats
• Households with a lodger
• Hostels and Bed & Breakfasts for vulnerable people
• Self-contained flats converted from houses

Landlords and HMO

If you’re interested in becoming a landlord to a HMO then you must obtain a licence which will outline conditions for your property, provided it is three or more storeys and occupied by five or more people, who form more than one household. If you do not require a licence you are still expected to meet management regulations and inspections under the Housing Health and Safety Rating System.

A lot more time and investment goes into managing a HMO as you hold multiple contracts for tenants within one property, however it is still fairly similar to a regular landlord’s responsibilities. There is also great emphasis on providing good housing conditions; otherwise your local council can get involved. Another similarity is the requirement for good landlord insurance as certain tenant behaviour can affect your policy.

For more details on HMO you can contact your local authority.