How to make sure your HMOs are fully compliant and adhere to all local regulations.
HMO Regulations and Licensing
HMO is a very lucrative investment strategy and it’s extremely popular for people who want to increase their savings, save for retirement or just boost their monthly cash flow. Although the regulations for HMO properties are quite straightforward, when it comes to the details of planning and licencing, it can become a little more complex.
If you have five or more tenants in your HMO then you’ll need to apply for mandatory licensing. This varies between local authorities. For instance, in Sheffield, it’s £750, Manchester £985 and in the London borough of Barking & Dagenham, it’s as much as £1,300.
Even if your HMO is smaller, ie three or more tenants, you could still be subject to selective licensing conditions. This type of licence tends to be less expensive (usually by around £200 but again, depending on the area).
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