HMO management could fall into three categories: self management, agents for letting and HMO management businesses.
Check out this article for an authentic assessment of the different types of HMO property management options available to landlords and the HMO standards to be observed as well as the legal requirements associated with being a proprietor of an HMO.
What exactly is HMO managing properties?
HMO property management is the management of a home that has three or more residents from two or more households. The HMOs usually fall under one of three groups: student HMOs working professional HMOs , and the social housing HMOs. HMO property management includes:
Room valuations and leasing (including marketing and viewings, tenancy negotiations reference, right to rent checks , and the management of security deposits)
Handling day-to-day management for tenants
Organising repairs maintenance, upgrades and repairs to HMOs
Check-ins for tenants and check-outs
Assuring HMO conformity: HMO licensing, furniture compliance as well as gas safety, fire security, energy performance and electrical security
Are there legal obligations for an HMO?
The legal requirements for an HMO can be divided into 4 categories: HMO standards, property certificates, HMO licensing and planning permission.
HMOs have space requirements that are set from the council of your local. They require an absolute minimum size for bedrooms and a minimum amount of communal space, as well as other requirements like bathrooms as well as cookers, kitchen units fridges, worktops and other space.
HMOs also need additional safety measures for fire, such like smoke detectors, fire doors carbon monoxide detectors as well as emergency exit routes. If the standards aren’t met the property owner won’t be eligible to obtain an HMO license.
Certificates of property
HMOs need all of the same certificates for property as single lets, including annually issued gas safety certificate and electrical conditions reports each five-year period and EPCs every 10 years. HMO tenants must receive the same paperwork as tenants who are single lets such as the government’s ‘How To Rent guide.
All HMOs that have greater than 5 tenants must obtain the mandatory HMO license. All HMOs located in specific zones (determined by the local government) need another HMO license, regardless of how many occupants they are.
HMO planning approval
HMOs within HMOs in Article 4 areas need approval from the planning department to change the purpose of the dwelling from C3 in C4 areas to a C4 HMO. In non-Article 4 zones the change is made under permitted development.
Who is responsible for HMOs?
HMOs are typically managed by three types of people/organisations: landlords, letting agents and HMO management companies.
Many landlords opt the option of managing their HMO by themselves to reduce administration costs. This choice is very preferred by landlords of HMOs for students, as the tenant turnover is restricted to only once every year. Tenancies are according to the academic calendar and are in constant demand.
Traditional high-street letting agents handle every kind of property that range from one-bed single-let apartments to 12-bed HMOs for students. The majority of letting agents are a small group of personnel who are responsible for a vast amount of properties. The fees are usually charged per service, like the charges for renting a room and referencing a tenant making an inventory count, etc.
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HMO management companies
HMO management firms manage only HMOs and are the most common specialists in this area. Most often, there will be three different levels of service available to select between: HMO lettings, HMO management, and HMO guaranteeing rent. The charges are usually affordable and comparable with local letting agents.
What do you think are HMO standards?
“HMO standards” refers to the HMO standards that are the minimum requirements for HMOs in the UK as stipulated in”HMO standards” in the Housing Act 2004. These standards concern kitchens, bathrooms and fire safety, as well as heating, and space standards in HMOs. The standards are HMO standards established in government officials from the UK government, however local authorities are able to impose more stringent limitations at their discretion.
Who pays for the expenses in an HMO?
Who pays for the bill in an HMO will be contingent on the kind of contract that tenants have with their landlord, as well as the kind of agreement is signed by the landlord with its HMO manager. Payers of bills in an HMO will generally be classified into three groups: landlords, tenants as well as HMO managers.
In the case of a student HMO it is the tenants who typically pay for utilities and subscriptions. This is because they have a good relationship with each other, and therefore are content to divide the bill between themselves in exchange to pay a lower rent.
In a professional HMO The landlords generally pay for the charges for utilities as well as subscriptions. They’ll rent the rooms for more money, but one that covers costs. This can be a little more risky for landlords since their earnings depend on the energy costs. This is usually the case regardless of whether or not the property is managed by the owner or by an agent for letting.
The service the landlord selects, HMO managers will usually be responsible for charging tenants for their rent in an HMO. In exchange, they’ll cost tenants more rent that is all-inclusive. If landlords want to minimize risks by not having to pay utility bills, they need to consider a rent guarantee program.
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