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Student properties: the ins and outs of HMOs
Student properties: the ins and outs of HMOsFor those about to rent a student property, as well as landlords looking to market their investment as such, it's sometimes all too easy to plough ahead with a limited understanding of the specific legislation surrounding this area of lettings. Property manager Angie German (pictured left) explains why the definition of a student property is not as clear cut as it may initially seem, highlighting the importance of HMO requirements.

Student properties come in all shapes in sizes. For many, a student house will be an exciting step a first tentative move away from home, likely in with friends, and a taste of independence to come.

Close proximity to a place of study, local amenities and good transport links will be at the top of the agenda, alongside best value for money and space – both in terms of bedroom size and communal areas. Parking may also be important, as well as a garden. In short, somewhere to call home. But for both tenants and landlords alike there is more to think about – namely whether the property should and does comply with HMO guidelines.

What is a HMO?
In brief, a house in multiple occupation (HMO) is any building, or part of a building, occupied by people forming two or more households, and where those persons share (or lack) one or more basic amenities, such as a WC, or personal washing and cooking facilities. A household comprises, for example, a married couple, a civil partnership, or family members related to each other. Bed-sit accommodation and houses or flats occupied by sharers where there is no family relationship (student groups, for example) are therefore types of HMO.

HMOs can also be houses or buildings that have been converted into self-contained flats, if the conversion fell short of the standards required under the Building Regulations 1991, and where at least one third of the flats are tenanted. Whilst a purpose-built block of flats is itself not considered an HMO, an individual unit within it may be, particularly if it is let to three or more tenants. A further example is a converted building where there is a mix of self-contained and non self-contained accommodation.

HMO Licensing & Compliance
As of 6 April 2006, it is compulsory for HMOs to be licensed. Licensing is mandatory for all HMOs that have three or more storeys, and occupied by five persons forming two or more households, but local authorities may also enforce HMO licensing schemes to apply to properties with fewer than three storeys and fewer than five occupants. These may be introduced because of concerns relating to a property's state of disrepair, its lack of facilities, and its future management and maintenance, as well as to reduce the risk of antisocial behaviour from occupants.

Landlords are required by law to comply with HMO regulations, thereby ensuring the health and safety of the occupants within the property. As a license holder, they must provide annual gas safety certificates (where applicable), install and maintain smoke alarms and fire extinguishers, make sure that electrical appliances and furnishings adhere to current safety standards, and provide occupants with a written statement of the terms under which they occupy the property.

The Housing Act 1985 also outlines additional criteria, which HMOs must meet. These include:

• no serious disrepair or damp
• stable structure
• adequate ventilation, heating, lighting, drainage and means of fire escape
• suitable facilities to store, prepare and cook food
• suitable provision of worktops for food preparation
• sink or sinks with hot and cold water and a draining board
• appropriately located toilets, bath(s), shower(s) and wash-hand basins for the sole use of occupants

It is also the duty of the landlord/building manager to ensure the repair and maintenance of all drainage systems, water, gas and electricity supplies, the common areas (internal and external), living accommodation and windows/means of ventilation. They must also do the same for fire escapes and fire safety equipment. There must be adequate provision for the disposal of rubbish, as well as a notice within the property giving the manager's name and contact details. Reasonable steps to ensure the safety of occupants must be taken, as well as any other relevant information forwarded to the local authorities.

Whilst local authorities have received over 30,000 applications for HMO licences since April 2006, landlords that have failed to do so could be liable for a fine of up to £20,000, with a £5,000 penalty facing those with a licence but in breach of its regulations. Would-be tenants themselves should be mindful to ask whether the property under consideration complies with HMO regulations.

To find out more about HMO requirements, visit the government's communities website.
17 April 2009

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