An HMO is a house shared by three or more unrelated people who have separate tenancy agreements. At the moment a license is only required under certain conditions but soon those conditions are going to become a lot stricter. This can only be a good thing as there are still a lot of very poor and unsafe HMOs in the country and the additional regulation should get rid of bad landlords from the industry.
Property Expert Series: Dale Wild from Pegasus Property Investments & Landlord Co.
- Part 1: Introducing Dale Wild from Pegasus Investments and Landlord Furniture Co.
- Part 2: What Projects Are Pegasus Investments Working On and Why?
- Part 3: What Is An HMO?
- Part 4: What Furniture Should You be Providing in an HMO?
- Part 5: What Colour Schemes Work Best for HMOs?
- Part 6: Is it Better to Put Up Blinds or Curtains in an HMO?
- Part 7: What Type of Beds Should Investors Use in Their HMOs?
- Part 8: How Much Should a Landlord Budget to Furnish an HMO?
- Part 9: How to Give Your HMOs the WOW Factor
- Part 10: How To Invest in HMOs
- Part 11: What Do Landlords Need to Know About HMO Licensing?
- Part 12: What Has Been Your Biggest Mistake in Property Investment?
- Part 13: What Has Been Your Biggest Win in Property?
- Part 14: How Does the Cashflow from HMOs Compare to Buy-to-Lets?
What Is an HMO
Amy: What’s the true definition of an HMO? What is an HMO?
Dale: An HMO is, obviously, House in Multiple Occupation and is a house that is shared by three or more individuals. So, it’s people that are completely unrelated that live in a house who each have their own tenancy agreement, per room.
Amy: How would you know if you need a licence with an HMO? Does every HMO need a license?
Dale: Not currently. The whole country will soon have to have HMOs licensed. I think it’s a great thing because there’s a lot of terrible ones out there.
Currently, in my area of operation, in Oldham, it will only need a license if it’s over three stories and over five people. So both of those criteria.
But it’s soon to be changing to all HMOs, I believe over four people but I’ve even heard the number three, touted around.
Some people are thinking this is a money making scheme for the government. It’s nonsense. It’s about the safety of people.
Some of the HMOs I’ve been to over the years, particularly in my early days when I was starting out and booking viewings, wasting agents’ time, just to see what the competition was doing. Some of them were absolutely terrible.
Really, really terrible living conditions. There was no fire doors, no fire alarm systems.
So it can only be a good thing for the professional investors out there.
Hopefully, the dross, as it were, the people that are cutting the corners, they’ll, sort of, close the doors and get out the market.
Amy: Yeah, I really agree with that, We’re looking at situations where we’ve got overcrowding and we’ve got like you say, no fire doors and things like that.
These are accidents, waiting to happen. It’s people’s lives.
Dale: And it’s common.
Amy: There are risks. I agree that it’s hopefully going to make a good impact on the industry and the sector.
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