What is an HMO?
An HMO is a property that is rented out to three or more tenants who are not part of the same household but share communal areas, such as a kitchen or bathroom. This can include bedsits, shared houses, and some flats. HMOs are a popular choice for students and young professionals as they can offer more affordable accommodation and the opportunity to socialize with others.
Planning Permission
In the UK, planning permission is required for certain types of HMOs. If the property is classified as a small HMO, which is a property rented out to three to five tenants, then planning permission is not usually required. However, larger HMOs, which are rented out to more than five tenants, may require planning permission, especially if the property has been significantly altered to accommodate more tenants.
To determine whether planning permission is required, you should check with your local council. You can also seek the advice of a planning consultant who can guide you through the process and help you to prepare the necessary documents and plans.
HMO Licensing
In addition to planning permission, all HMOs in the UK must be licensed by the local council. The licensing process involves a thorough inspection of the property to ensure that it meets certain standards for health and safety, and that the property is suitable for the number of tenants that will be living there.
To obtain an HMO license, you will need to provide detailed information about the property, including its size, layout, and facilities. You will also need to provide evidence that you are a suitable landlord and that you have taken steps to ensure the safety of your tenants, such as installing fire alarms and providing adequate escape routes in case of an emergency.
HMO Management
Managing an HMO can be a complex and time-consuming process, especially if you are new to the industry. As an HMO landlord, you will be responsible for the upkeep of the property, ensuring that it meets all safety standards, and dealing with any issues that arise with tenants. It’s important to have a good understanding of the laws and regulations surrounding HMOs, and to have a plan in place for dealing with any issues that may arise.
One option is to hire a professional HMO management company, like us! In fact, we have been operating in the HMO industry for many years and can save you time and reduce the stress involved in managing an HMO.
Conclusion
Investing in an HMO property can be a smart financial move, but it’s important to be aware of the planning requirements and regulations involved. This includes obtaining planning permission if required, obtaining an HMO license, and ensuring that the property meets all safety standards.
If you’re new to HMO investing, it’s also important to have a good understanding of the industry and to have a plan in place for managing the property. This could involve hiring a professional management company or building a team of professionals who can help you to run the property.
At the end of the day, investing in an HMO can be a great way to build a profitable property portfolio, but it’s important to do your research and seek professional advice to ensure that you’re making the right decisions for your investment goals Why not talk to us today? You can call us right now on 0203 950 8834 or email us at info@hmo-advice.co.uk.
