House in Multiple Occupation (HMO) is a commonly used term used within the private rented sector but many landlords are unsure if their property qualifies as a HMO property.
In 2006, mandatory HMO licensing came into place with the aim being to raise the standard of accommodation in HMO’s throughout the industry.
It is important to understand the differences between a HMO and other types of properties. For example, special legislation applies to HMO properties and the property may need to be licensed by the council.
What is a HMO property?
If you let a rental property, like the ones described below, it will be an HMO:
- An entire flat or house which you let to three or more unrelated tenants (this can include student tenants).
- A house which has been converted into bedsits and is let to 3 or more unrelated tenants who share kitchen, bathroom or toilet facilities or separate flats (which include studio flats) let singly where the tenants share some facilities.
- A building which is entirely converted into flats which doesn’t meet the current regulations (the 1991 Building Regulations) and where a third of the flats are let on short-term tenancies.
For the rental property to be a HMO the tenants must use it as their only, or main, residence and the property should be used solely, or mainly, to accommodate tenants.
If your property is let to students or migrant workers, it will be treated as their only, or main, residence.
If you are unsure if your property is a HMO, then you should contact your local authority for further guidance.
HMO landlords often find that some insurers are averse to protecting the property, in some cases not even offering you a quotation, or increasing premiums to account for this.
Get a quote
Get a quote for your House in Multiple Occupation (HMO) today
At Hamilton Fraser Total Landlord Insurance we recognise that some of the risks associated with HMO properties are no greater than a single occupancy property.
We also understand that not all HMO’s are the same and as a result we have negotiated preferential rates depending on how the facilities are shared, for example where the kitchen facilities are shared by all occupants and there is no cooking in the rooms.
This means your property is fully insured by both our Essential and Premier policies, and you can rest easy knowing your property is in safe hands.
If you are interested in discussing your HMO insurance requirements give our expert team a call for more information on 0800 63 43 880.