HMO Landlord Services and Fees

Did you know we also offer a Let Only and Fully Managed Service to our HMO Landlords?

HMO's require a more intensive, different style of management. There are lots of additional considerations to take into account when managing a HMO.

The property must meet the standards set by the licensing team at Swindon Council, then there's the cleaner to arrange, and the weekly checks of the fire alarms, emergency lighting and standard of the cleaning. And that's before you even think about trying to ensure the house mates get on together!

If its managed well, A HMO can give a much higher rental yield and prove to be a very good investment.

Please see below for details of service levels, and fees.

If you have a large HMO portfolio, or if you're just starting out, please get in touch to discuss your requirements in more detail.

Guide to HMO's

HMO (House in Multiple Occupation)

Under the changes in the Housing Act 2004, if a landlord lets a property which is one of the following types it is a House in Multiple Occupation and may need to be licensed.

an entire house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet
a house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to three or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities
a converted house which contains one or more flats which are not wholly self contained (ie the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by three or more tenants who form two or more households
a building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies
in order to be an HMO the property must be used as the tenants only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges
The landlord must check with the relevant Local Authority and obtain the correct licenses before any tenancy can commence. Failure to obtain a license can attract large fines of up to £20,000.

What does this mean for landlords & managing agents?

As an unlicensed HMO, you may not require a licence but you must adhere to the same safety standards and fire safety management requirements as a licensed HMO.

Management standards for HMO’s include; The Management of Houses in Multiple Occupation (England) Regulations 2006/2007.

The National Fire Safety Guidance LACORS fire safety standards determines the required fire fighting and detection equipment.

The Regulatory Reform (Fire safety) Order 2005 requires all 'responsible' persons, i.e. landlords and managers, to undertake a fire risk assessment of HMO's.

Legislation & Obligation Legislation places a legal obligation to ensure fire safety of HMO's is carried out by a ‘responsible person’ In terms of the law, the ‘Responsible Person’ refers to the person who has control of the premises in connection with “carrying of the business”, meaning, in the case of absentee landlords it may well be the managing agent. The person carrying out an assessment must be competent to do so - a competent person is to be regarded as a someone with sufficient training, experience and knowledge of fire safety.

Failure to comply:

If you fail to comply with the HMO management rules & regulations Failure to comply with the HMO management regulations can result in enforcement action being taken out against managing agents and landlords. If you do not meet this legislation, you may incur unlimited fines through the courts, prosecution and even being imprisoned. In such cases, you will not be a ‘fit and proper’ person and therefore will no longer be able to manage your HMO property. Your insurance can become null and void and therefore not pay out on damages or any claims Under the ‘relevant persons’ section your mortgage lenders may be contacted and your mortgage can be revoked.

Please click on the links below for each Local Authority's guidance

https://www.swindon.gov.uk/info/20025/homes_and_property/236/houses_in_multiple_occupation/2

http://www.wiltshire.gov.uk/housing-houses-in-multiple-occupation

Please get in touch for details on our services and fees

landlords@greentreepm.co.uk