Understanding Housing in Multiple Occupations (HMO)
Housing in multiple occupations, commonly referred to as HMOs, describes a situation where a house is let out to a minimum of three individuals forming two or three households. The occupants share common facilities such as a kitchen, bathroom, and toilet. For a house to be classified as an HMO, it must be the primary or only residence of the tenants. In this post, I will explore and explain what HMOs entail.
What is the Design of an HMO?
If you plan to build a house of multiple occupations, employing professional architectural services is essential. As a potential HMO owner, understanding the layouts and design patterns of various HMOs is beneficial.
An HMO should include several key features. Typically, bathrooms and kitchens are shared areas for all occupants, along with other common spaces such as gardens and staircases. HMOs are commonly divided into self-contained flats, bed-sitting rooms, and simple lodgings.
How to Obtain an HMO Licence
Obtaining an HMO licence is not as straightforward as some may think. HMOs are popular among buy-to-let investors due to their potential for high income within a short time frame.
The high-income potential of HMOs makes them appealing to investors looking at buy-to-let properties. Converting a single property into smaller units with separate tenancy agreements can help landlords minimise losses from unpaid rent. Licensing is generally classified into three categories:
1. Mandatory Licensing for Large HMOs
This licence is required for large HMOs where there are a minimum of five tenants from at least two households. This requirement is applicable nationwide for HMOs with five or more occupants and two or more households. However, this licence does not apply to flats situated in a building containing four or more self-contained flats.
2. Additional Licensing
Additional licensing may be imposed by a council requiring other sizes of HMOs to be licensed.
3. Selective Licensing
Selective licensing allows the borough to decide on licensing at their discretion. This can affect all rental properties, regardless of size, number of storeys, or tenant count. Before granting a licence, the local authority must ensure that the landlord and any managing agent are fit to hold a licence and that the property meets the required physical standards.
Licences are granted when:
- Necessary fire safety measures, such as smoke detectors and extinguishers, are in place.
- Annual gas safety checks are up to date.
- Electrical wiring and appliances are certified safe by an expert for the next three years.
- The property is not overcrowded.
- Communal and publicly used areas are kept clean and well-maintained.
- Appropriate refuse storage and disposal facilities are available.
Once granted, the licence must be displayed in the communal areas. The procedures for obtaining an HMO licence can vary by country. Strict laws in countries like Ireland, the USA, and the UK outline the licensing process. Therefore, it is advisable to conduct thorough research and consult relevant agencies for guidance on obtaining an HMO licence.
Conclusion
Owning one or several HMOs can be a significant asset, generating consistent income. Always ensure you have the correct licence from the appropriate authority to operate an HMO. If you need architectural services to help you achieve your goals, please get in touch—our team would be delighted to assist.
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At Muse Architects, we offer a wide range of local architectural services to clients in Manchester and beyond. From building control in Manchester to office design project management, our team of experienced architects has the skills and expertise to handle any project. Whether you’re looking for commercial building architects or residential architects near you, we’re here to help.
As local architects, we understand the unique challenges and opportunities of designing buildings in Manchester. We specialise in Manchester residential architect services and work closely with clients to create beautiful, functional spaces. Our 3D property visualisation services, including 3D visualisation for city planning and interior design, are designed to help you bring your vision to life. Contact us today to learn more about how Muse Architects can help you achieve your architectural goals.
