Understanding multiple occupancy housing
Understanding the complexities of houses in multiple occupation is admittedly no easy task. From recognising whether your property falls into the category of HMO, to knowing whether the property must be licensed and adhering to all the rules, owners of this property type must exercise due care in terms of operating and managing the premises.
Broadly defined, houses are considered to be in multiple occupation when a property is let to three or more individuals who are not members of the same family or household, where they share at least one basic amenity, such as a bathroom or kitchen. Houses occupied by students, for instance, are a common example of houses in multiple occupation. A purpose-built block of flats is not necessarily considered an HMO, but a building converted into flats without meeting the standards set by the 1991 Building Regulations can be considered an HMO.
On top of having to register your property as an HMO, some landlords may additionally require a license from their local council to operate the property. Mandatory licensing applies to all houses in multiple occupation that are three stories or above that are occupied by five or more people who form at least two households. Discretionary licensing applies to all other houses in multiple occupation, whereby the local authority decides whether a license is required. In order to obtain a license, the HMO landlord or manager must demonstrate that he or she is fit and proper to operate such a property and that the property meets the rules set forth for houses in multiple occupation.
All landlords of houses in multiple occupation, whether licensed or not, must adhere to a strict set of rules intended to ensure the property remains in a safe and habitable condition. Many of the rules are common sense practices that landlords of any property should follow regarding good upkeep of their property, while others may require a more involved management style to ensure the property’s layout and amenities meet minimum health and safety standards and that occupancy is maintained at an acceptable level.
To ensure you know and adhere to all the rules, consult with your local authorities – the Council, Environmental Health and Fire Officers – for advice on all the requirements. Listed below, however, are some of the main requirements.
Gas Safety – HMO landlords are legally obligated to ensure all gas fixtures and appliances are maintained and operating safely. A certified inspector must check the gas appliances and fixtures once a year and issue a certificate of safety, a copy of which should be presented to the tenants.
Non-adherence to gas safety rules can result in the HMO owner being fined, or even prosecuted if neglecting the rules causes death or injury to another person, so you absolutely must stay on top of your property’s gas safety.
Electricity Safety – A qualified electrician should inspect all electrical installations at least every five years to ensure they are in safe working order, and tenants should be presented with a copy of the safety certificate. Any electrical problems brought to your attention should be dealt with immediately.
Fire Safety – Adherence to fire safety rules is equally important. Stairs, passageways and fire escapes should all remain clean and obstruction-free, fire alarms and extinguishers should be regularly tested and any furnishings or furniture within the property should be fire safe, with the appropriate labels attached to show they are safe. Fire exits should be clearly identified, and any HMO with five or more occupants should have a notice displayed that identifies the fire escape routes.
Water Systems – Water pipes, tanks and drainage systems should be well maintained so they remain in good working condition and free from problems that could result in burst pipes or leakages. If tenants report any problems with the water systems, act immediately to repair the problem.
General Safety – Tenants should be safe from injury, so adhere to any steps necessary in this regard, including the good upkeep of your property’s structure and boundary walls or fences. Keep common areas in safe condition and good decorative order, which includes removing trash or items that tenants dump in the passageway, hall, garden, driveway or other common areas. It also includes ensuring carpets are securely fitted, so no one trips on them, and ensuring all stairway banisters and handrails are securely fixed in place. Ground floor windows should be barred to prevent unwanted access, although the tenants must have the ability to unlock the barrier from inside in case a rushed exit from the premises is required, and ventilation systems should be kept in good working order.
Tenant management – Landlords should be in control of tenant occupancy to ensure there is a record of all occupants, particularly in cases of licensed houses in multiple occupation where the local authority has imposed a maximum number of occupants allowed. When requested, you must provide the local authority with tenant details and any changes in tenants.
Stay in control of tenant behaviour, and attend to any problem tenants immediately to prevent them interfering with your other tenants’ safety and well being or creating a nuisance with the neighbours.
Your tenants should know who is responsible for managing the property, whether it is you or someone working on your behalf, and a notice giving that person’s contact details should be displayed on the premises.
Insurance – If you own an HMO, special insurance coverage is required. Contact your insurance broker for information on landlords property insurance for houses in multiple occupation.
Ladaniel McNaughton is a professional landlord and home improvement expert who has written prolifically on the subjects. His musing can be seen at Landlords Insurance, and overseas property insurance
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