How to avoid HMO licence and comply with London property regulations
As a landlord or property manager in London, it’s important to understand the regulatory framework surrounding Houses in Multiple Occupation (HMOs). An HMO is defined as a property that is rented by at least three people who are not from one household, but share facilities like a kitchen or bathroom. HMOs are subject to special regulations to ensure that they are safe and habitable for tenants.
One of the most important regulations to be aware of is the HMO licensing scheme. In London, properties that meet certain criteria must be licensed as HMOs by the local authority. Failure to obtain a licence can result in fines, legal action, and even imprisonment. However, licensing can be a lengthy and expensive process, so many landlords and property managers try to avoid it.
Here are some tips for avoiding the need for an HMO licence while still complying with London property regulations:
1. Avoid letting to three or more unrelated tenants. The HMO regulations only apply if a property is occupied by at least three people from different households. If you have fewer tenants, you may be able to avoid the need for a licence.
2. Keep the property within the prescribed maximum occupancy. HMOs are subject to occupancy limits, depending on the size of the property and the number of facilities available. By ensuring that your property stays below the occupancy limits, you may be able to avoid licensing.
3. Avoid letting to students. Certain types of HMOs, such as those occupied solely by students, may be exempt from licensing requirements. However, this exemption only applies in limited circumstances, so it’s important to check the rules carefully.
4. Use a managing agent or rent to a single tenant. If you’re concerned about the regulatory burden of managing an HMO, you may find it easier to use a managing agent. Alternatively, you could rent the property to a single tenant or household, which would not fall under the HMO rules.
5. Keep the property in good condition. Even if your property does not require an HMO licence, you are still required to maintain it to a certain standard. This includes ensuring that it is free from hazards and providing adequate facilities for the number of occupants.
By following these tips, you can reduce the likelihood of needing an HMO licence while still complying with the regulatory framework for London rental properties. However, it’s important to remember that the rules can be complex and may vary depending on your location and circumstances. If in doubt, it’s always best to seek professional advice from an experienced property lawyer or other specialist.
