When it comes to renting out properties in the UK, the rules can be complex, particularly when dealing with Houses in Multiple Occupation (HMOs). For landlords waiting on an HMO licence, one question often arises: Can you let your property be as an HMO while waiting for the licence? In this article, we’ll break down the essential information on HMO licensing, including the rules, risks, and best practices, so you can make informed decisions and avoid potential legal pitfalls.

What is an HMO Licence?

A House in Multiple Occupation (HMO) refers to any rental property occupied by three or more tenants from different households who share common amenities like the kitchen, bathroom, or living room. Due to the unique nature of HMO properties and the higher risks involved, the UK government mandates that landlords obtain an HMO licence before renting out certain types of properties.

The aim of HMO licensing is to ensure that the property meets specific health and safety standards, including adequate room sizes, fire safety measures, and proper waste management facilities. These regulations protect tenants and ensure landlords maintain properties responsibly.

Is an HMO Licence Always Required?

Not all rental properties require an HMO licence. Under UK law, a licence is generally mandatory for properties that:

• Are rented to five or more people from more than one household.
• Have shared facilities, such as kitchens and bathrooms.

Are situated in a location where the local council mandates additional or selective licensing schemes.
Before letting your property, check with your local council, as requirements can vary by area.

Can You Operate as an HMO While Waiting for Your Licence?

In some cases, landlords can start letting their property as an HMO while their application for a licence is being processed. However, the rules can be complex and vary across different UK local authorities.

Here’s what you need to know:

Application Process: To legally operate as an HMO while awaiting your licence, you must submit a complete and valid application to your local council. Once your application is submitted, you may be allowed to continue renting to multiple occupants. However, operating without having initiated the application process is illegal.

Local Council Policies: Different councils have different policies on interim HMO operations. Some councils may allow letting while the licence application is being processed, while others may impose restrictions. It’s crucial to check with your local authority to understand their specific requirements.

HMO Standards Compliance: Even while waiting for a licence, you must comply with HMO standards regarding fire safety, hygiene, and adequate amenities. The property should meet all health and safety requirements expected of an HMO. Failure to do so can lead to fines, penalties, or even prosecution.

Licensing Fees and Documentation: An application for an HMO licence typically involves a fee, which varies based on the property size and the council’s rates. Ensure you submit all necessary documentation, including floor plans, fire safety certificates, and evidence of compliance with local standards.

Fit and Proper Person Test: This test is a part of the application process to ensure the landlord has no criminal record and is deemed responsible to manage an HMO. Submitting this information promptly can expedite your application.

Potential Risks of Letting as an HMO Without a Licence

If you let a property as an HMO without the appropriate licence (or without applying for one), you may face several serious risks:

Penalties and Fines: The fine for operating an unlicensed HMO can be substantial, reaching up to £30,000 in some cases. This can be a significant setback for any landlord.

Rent Repayment Orders: Tenants living in an unlicensed HMO may have the right to reclaim up to 12 months of rent. This can result in major financial losses.

Reduced Credibility: Operating without a licence or in violation of HMO regulations can damage your reputation as a landlord and affect future tenancy applications.

Council Intervention: If the council identifies an unlicensed HMO, they may take control over tenant management, or enforce repairs and improvements at your expense.

Steps to Comply with HMO Licensing While Waiting

While awaiting your licence, there are several best practices to ensure your HMO meets UK guidelines:

1. Submit Your Application Early: Apply for the licence as soon as possible, especially if you plan to let the property immediately. Processing times vary by council, but applying early shows compliance intent.
2. Ensure Safety Standards: Install fire alarms, emergency lighting, and fire extinguishers, and ensure doors meet fire resistance standards. Safety is non-negotiable in HMO settings.
3. Maintain Proper Amenities: An HMO should provide adequate bathroom, kitchen, and living facilities to accommodate the number of tenants. Each tenant must have access to suitable shared spaces without overcrowding.
4. Stay Informed on Council Policies: Contact your local authority for guidelines specific to your location. Each council may have unique requirements or recommendations for interim HMO operations.
5. Inform Tenants of Compliance: It’s helpful to communicate your application status with tenants and explain how you’re meeting safety standards. This transparency can build trust and assure tenants of their safety and security.

HMO Safety Certificates

In Closing

Letting an HMO while waiting for a licence is possible if you’ve submitted a complete application and adhere to the standards expected of a licensed HMO. However, it’s essential to confirm with your local authority to avoid unexpected fines or complications.

In the UK, complying with HMO licensing regulations protects your tenants’ welfare and contributes to the value and reputation of your rental business. By ensuring your property meets safety standards, you can confidently navigate the process of letting an HMO and optimise your investment with peace of mind.

Before you begin, consult with local experts or HMO management services to ensure your application is complete and accurate. This proactive approach can help you start your HMO journey smoothly while meeting UK guidelines and safeguarding your interests.

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