HMO landlords - Rights and Responsibilities

In order to run a successful HMO business it`s essential that you know your rights and responsibilities as a landlord so that you can provide your tenants with the best possible environment. In this article, we`ll take a look at some of the rights and responsibilities associated with being an HMO landlord.

HMO stands for House in Multiple Occupation, so, HMOs are shared properties which contain more than one household. The law generally defines an HMO property as a building which is shared by `more than three people and more than one household.` Self-contained flats and bedsits and shared houses are therefore included in this category.

Student houses and flats where students share communal space and rent rooms are also considered HMOs. There are some differences between HMOs and standard single occupancy renting. One is the amount which you could stand to earn. Some landlords have been known to make as much as a third more rent by choosing to let their property as an HMO instead of a single occupancy let. Hotels or bed and breakfasts, bedsits, hostels, shared flats and houses, and halls of residence are all considered HMO

Rights and Responsibilities

When it comes to HMO rights, you`ll have all the rights associated with being a private landlord. However, before renting your property out, you`ll need to obtain a license to do so.

You will also need to contact your local authority in order to consult Health and Fire Safety Officers. You are under all the usual obligations as an HMO landlord as you would be a single occupancy landlord. Although, on top of these responsibilities such as keeping the property in good condition and ensuring it is safe for tenants, you`ll also need to:

. Obtain a license to operate your HMO
. Have fire extinguishers and smoke alarms fitted and tested regularly
. Pay the tenants council tax (this amount should be included in their rent)
. Display contact details for the property manager (either you or an associate) on the premises
. Take out a special type of HMO insurance
. Take partial responsibility for any nuisance or disturbance claims from neighbours
. Keep stairways, fire escapes and passage ways unobstructed
. Register with the local authority and provide information regarding your tenants
. Not overcrowd your property
. Keep the property habitable and carry out any maintenance work which needs doing
. Keep contracts/documentation for all tenants

Ensure that the layout and facilities are an acceptable standard as dictated by your local authority

The Pros and Cons

The main benefit with an HMO let is a bigger return on investment. You could earn over a third more cash by renting out individual rooms. On the downside HMOs take more management time. Durham property is a good investment if you`re thinking of renting out an HMO, as there are many young professionals working in the city along with a good University; teaming with students ready to rent. For more information on Durham Property visit - http://www.cathedrallettings.com/durham-property.php