Are you aware of the new HMO changes for Landlords coming into effect soon? If you’re a landlord and own a property containing five or more people, regardless of the size of the property, in October 2018 you will be affected by the new HMO changes.
The Housing Act 2004 will introduce new licencing rules for a House in Multiple Occupation (HMO) that will be in effect from October 2018. So for licensing purposes, a HMO is a house where 3 tenants live there which forms more than one household and they share toilet, kitchen or bathroom facilities with other tenants.
A large HMO is at least three storeys high, at least five tenants live there which forms more than one household and they share toilet, kitchen or bathroom facilities with other tenants.
In fact, The Ministry of Housing, Community and Local Government wants to reinforce the living conditions of the tenants. The aim of this proposal is to prohibit landlords from letting rooms to a single adult where the usable floor space is less than 6.51sqm, and 10.22sqm for a room occupied by two adults. From now on, it will be mandatory for an HMO licence to include a condition that states the maximum number of persons who may occupy each specific room in a property, as sleeping accommodation.
Despite of the type of property, if you’re an HMO landlord you must fulfil all the standard landlord responsibilities. Plus, there are some extra responsibilities from October 2018, legally binding whatever the content of the tenancy agreement is:
These lists are not exhaustive to find out more you can visit this guide.
Your local council has to inspect the property at least once during that five years period. They need to make sure all health and safety have been complied with in your property.
There’s no legal obligation for a landlord to take out a dedicated HMO landlord insurance policy. But, if you have mortgage payments on the property it’s likely your mortgage lender requires you to take out insurance (buildings insurance) before you can rent the property. Due to legal requirements, it might be wise to consider getting cover for your rental investments:
You can choose from a range of covers designed for landlords, including property owners’ liability insurance, multiple properties, insurance for bedsits, personal possessions, along with buy-to-let buildings cover. Do you have suitable cover in place?
*The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.
Published by: intasure