What is a HMO Property?
Before we get into the licensing requirements of HMO properties, it’s important to understand what is meant by HMO and which type of properties come under this term.
HMO stands for Houses in Multiple Occupation and although the definitions around this phrase can be quite complex, HMOs are typically any property that is rented out to at least 3 or more tenants who form more than 1 household and share facilities such as a toilet or kitchen.
Whilst this is a common and typical setup for flat or house shares, other examples of HMO properties may also include:
- Hostels
- Blocks of converted flats
- Shared student accommodation
- Self-contained cluster flats
Manchester City Council defines HMO as:
A building, or part of a building which:
- more than 1 household lives in and facilities are shared e.g., a toilet;
- is a converted building where more than 1 household lives in and is not entirely made up of self-contained flats; or
- is made up entirely of converted self-contained flats and the standard of conversion does not meet that required by the 1991 Building Regulation and more than one third of the flats are occupied under short tenancies (Section 257 HMOs)
And is occupied by more than 1 household:
- as their only or main residence;
- as a refuge by persons escaping domestic violence;
- during term time by students; or
- for some other purpose that is prescribed in regulations
And the households consist of:
- families (including single persons and cohabiting couples); or
- any other relationship that may be prescribed by regulations e.g., domestic staff or fostering or carer arrangements
Typical Characteristics of HMO properties include:
- Multiple Tenants: Accommodates a minimum of 3 tenants.
- Shared Facilities: Commonly shared spaces include kitchen, bathroom(s), living room, and other communal areas that are used by all tenants.
- Individual Tenancy Agreements: Each tenant typically has their own individual tenancy agreement, with separate rental contracts, and are responsible for their own rental payments and obligations.
- Property Layout & Configuration: The layout of HMO properties may differ in a way that accommodates multiple tenants through a combination of private bedrooms and shared spaces.
- Regulations & Licensing: HMOs are subject to specific regulation and licensing requirements, which can vary depending on the area.
HMO Licensing
If you are planning to rent out a HMO property, you may need a licence to do so - it’s important to understand whether or not you need one as you may face fines and penalties if you don’t have a valid licence if required. Get in touch with your local council.
Mandatory HMO Licence in Manchester
You will need a Mandatory HMO Licence if the property in Manchester being rented out:
- is occupied by 5 or more people;
- who form 2 or more households;
- and facilities such as a kitchen or toilet(s) are shared by tenants
Additional HMO Licence in Manchester
The additional HMO licensing scheme is currently not in place, but the council may decide to extend licensing to smaller HMOs that do not meet the mandatory HMO licensing criteria. Landlords in specific areas of Manchester may also be subject to Selective Licensing, regardless of the number of tenants or households within the property.
The Manchester City Council website details more information about HMOs and applying for a licence.
Mandatory HMO Licence in Salford
You will need a Mandatory HMO licence if the property in Salford being rented out:
- is occupied by 5 or more people;
- who form 2 or more households;
- and facilities such as a kitchen or toilet(s) are shared by tenants
Additional HMO Licence in Salford
You will need an additional HMO licence* if your HMO in Salford:
- is occupied by 3 or 4 people and
- they form 2 or more households
*unless this HMO currently falls in a selective licensing area and therefore has a selective licence - you will not require an additional HMO licence until the selective licence designation ends in that area.
The Salford City Council website details more information about HMOs and applying for a licence in the area.
Properties that need to be licensed must meet certain standards, it is crucial for landlords to follow these standards.