Investor landlords need to know about HMO – Part 3

As part of our ongoing policy to advise landlords about the rental market, we present the third in our series of blogs about HMOs – Houses in Multiple Occupation, and what this means to investor landlords.

For a definition of Houses in Multiple Occupation and licencing details please visit Part 1 in this series. For why it is important to licence and maintain these HMOs please visit Part 2 in this series.

What happens if there are changes in circumstances in my HMO?
If there are changes that affect the status of your property you must be aware of the implications and be prepared to notify the local authority.

The following situations can easily arise during or between tenancies:

• the house is no longer in multiple occupation
• the tenant has allowed more people to live there than the HMO licence allows
• the licence holder (usually the landlord) is no longer suitable – fit and proper – to hold a licence
• the management is no longer suitable to manage an HMO
• the landlord wants to change the HMO licence holder
• the HMO is no longer suitable to be considered an HMO
• the landlord wants to change the HMO to occupation by a single household
• the landlord wants to sell the property

It is clear that these changes can be a consequence of actions by the tenant, landlord or the local authority and so the landlord must be aware of what is happening in the property. We would suggest that HMOs are regularly inspected to make sure that the conditions of the licence are being adhered to. Riley Marshall carries out regular checks on properties under their management scheme, and your agent may do the same for you. However if you do not have an agent to manage your property then we would suggest that you keep records of your visits in case the Local Authority need proof that you have taken your responsibilities seriously.

Obviously if you are the landlord and you are planning changes that affect the status of your HMO then you should tell your local authority as soon as possible. They may need to cancel it, alter the conditions of the licence being granted, or grant a different licence.

If the tenants change their circumstances then you will need to negotiate with them to bring them back within the terms of the licence and if this is not possible then you should contact the Local Authority for advice.

Landlords should be aware of how changes in circumstances affect their HMO licence, and you should consult your letting agent and your local Council if you have any queries or concerns.

This is the last in our HMO series but we will be sending out information on other aspects of the rental industry, if you want to find out the most up-to-date rental issues we are talking about then please click through to our main blog.