Houses in Multiple Occupation (HMOs) are subject to some of the most complex compliance requirements in the private rented sector. Getting HMO licensing wrong can result in unlimited fines and rent repayment orders. Here is everything you need to know.
What is an HMO?
A House in Multiple Occupation is a property rented by at least 3 people who are not from the same household (e.g., family) but share facilities like the bathroom and kitchen. Common examples include student houses, shared professional houses, and bedsits.
Mandatory HMO Licensing
Mandatory HMO licensing applies to all HMOs in England that are occupied by 5 or more people forming 2 or more households. These properties must be licensed by the local council.
To obtain a mandatory HMO licence, the property must meet minimum standards including:
Additional Licensing
Local councils can introduce additional licensing schemes that extend licensing requirements to smaller HMOs or other types of property. Check with your local council to find out whether additional licensing applies in your area.
Selective Licensing
Some local councils have introduced selective licensing schemes that require all private rented properties in a designated area to be licensed, regardless of whether they are HMOs. Check with your local council to find out whether selective licensing applies in your area.
Penalties for Non-Compliance
Operating an HMO without a licence is a criminal offence. Penalties include:
RentersComply's HMO Compliance Manager tracks all licensing requirements, renewal dates, and minimum standards for your HMO portfolio.