HMO Overview

An HMO, or House of Multiple Occupancy, is a property rented out by at least three people who are not from one household but share facilities like the bathroom and kitchen. The rules and definitions of HMOs can vary from town to town, but in Newcastle-under-Lyme, any property where more than two “households” live is considered a HMO. A household can be defined as a family, a couple, a boyfriend and girlfriend, two sisters, etc. For example, if you have two brothers and a couple living together, this constitutes four people but only two households, so it is not an HMO. However, if you have three unrelated friends living together, this is classified as a HMO.

In Newcastle-under-Lyme, HMOs can be classified as either “non-licensable” or “licensable.”

Non-Licensable HMOs

A non-licensable HMO is typically a property where the total number of occupants does not exceed four people and the number of households is more than 2. These properties do not require a licence from the local council but must still comply with basic safety and health regulations.

Licensable HMOs

A licensable HMO is any property with more than two households where more than four people live. This usually means five or more unrelated tenants. These properties must be licensed and landlords need to apply for this licence through the local council. The application process involves ensuring the property meets specific safety and amenity standards. At Belvoir Newcastle-under-Lyme, we can assist you with ensuring your property is compliant to help you obtain the necessary licence.

HMOs can be a lucrative investment for landlords due to higher rental yields compared to single-family rentals. Here are some key benefits:

HMOs typically offer higher rental yields as landlords can charge per room rather than a single rent for the entire property. This can significantly increase your income compared to traditional rentals.

In a HMO, reception rooms can be converted into additional bedrooms to maximise the number of occupants. This flexibility allows landlords to optimise their rental income.

Tenants in HMOs often prefer all-inclusive rent, which covers utilities and other bills. This arrangement simplifies budgeting for tenants and can be an attractive feature. We can set a usage limit in the contract to manage costs effectively when a single tenancy agreement is in place.

Managing a HMO comes with specific responsibilities to ensure the property is safe and meets legal standards. Here are some key considerations:

HMOs must comply with space standards, ensuring that each room meets minimum size requirements. This is crucial to ensure the property provides adequate living conditions for tenants. We can assist you in ensuring your property meets these standards.

Fire safety is paramount in HMOs. Properties must have appropriate fire detection and alarm systems, fire doors and safe escape routes. Compliance with these regulations is essential to protect tenants and avoid legal issues.

Regular maintenance is critical in HMOs due to higher wear and tear from multiple occupants. We conduct routine inspections to ensure the property remains in good condition and address any maintenance issues promptly.

At Belvoir Newcastle-under-Lyme, we offer comprehensive support for HMO landlords. Our services include:

• HMO Licensing Assistance: We guide you through the process of obtaining a licence from the local council, ensuring your property meets all necessary standards.
• Property Management: Our experienced team manages all aspects of your HMO, from tenant sourcing and rent collection to maintenance and compliance with regulations.
• Tenant Management: We handle tenant relations, including setting up tenancy agreements, managing disputes and ensuring a smooth tenancy experience.
• Investment Advice: If you are interested in purchasing an HMO, we offer expert advice on suitable properties and can help you acquire existing HMOs, sometimes already tenanted.

If you are considering becoming a HMO landlord, get in touch with us today. We can answer all your questions and provide detailed guidance on how to start and manage a HMO successfully. We also frequently sell existing HMOs for our landlords, offering properties that are often already tenanted and generating income.

Are you ready to explore the benefits of HMO lettings? Contact Belvoir Newcastle-under-Lyme today to learn more about how we can help you maximise your rental income through professional HMO management.

Experience the exceptional service of Belvoir Newcastle-under-Lyme today. Your property, our priority.