HMO issues
There are three things you need to know:
- Whether your property is already an HMO, or
- Whether by taking in lodgers you will create an HMO, and
- Whether, if your property is an HMO, you will need to get a license
1. Is your property already an HMO?
This may be the case if you are a tenant of private rented property. For example if you are sharing a property with people who you are not related to, e.g. in a student house.
Following on from this, if your home is in one of those HMOs where your landlord has had to obtain a license, he may not be able to let you to have a lodger. The reason being that most licenses limit the number of people allowed to live in the property. If there are already this number, your landlord will risk losing his license if he lets anyone else live there.
If this is your landlords reason for refusing permission, there is nothing that can be done (other than move house).
2. Will taking in a lodger create an HMO?
Under the Housing Act 2004, a property is classed as an HMO if there are three or more occupiers who form two or more households and who share a kitchen, bathroom or toilet.
A household is generally a family unit (including parents, grandparents, children (and step-children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins, plus half relatives and foster children). If therefore, you take in your cousin as a lodger, this will not count as a separate household. Similarly any ‘domestic staff’ for example an au pair or nanny.
As a live in landlord, you are allowed two ‘non family’ lodgers before your property can be classed as an HMO. So, if you take in three non family lodgers your property will probably be an HMO. However if you take in two uncles, your cousin and have a live in nanny, your property will not be an HMO, even though there will be more people living in it!
The HMO Management regulations : One of the main consequences of running an HMO is that you need to comply with the Management of Houses in Multiple Occupation (England) Regulations 2006 – whether or not you need to get a license. There is not time to discuss these in any detail here, but you can read them online >> here (they are also explained on my Landlord Law web-site >> here).
3. What about licensing?
Many people with lodgers do not realise that in some circumstances they may have to obtain a license from their local authority. This will be if:
- Your property is an HMO as discussed above, and
- The property has three or more storeys, and
- There are four or more persons living at the property in addition to yourself and your family (including any family who are lodgers and any domestic staff)
To work out how many storeys there are, you need to include all actual storeys in the building including attics and basements if these have been converted to residential use or if they are used for business purposes. So if you have a standard two story house where the attic has been converted to a bedroom then this will count as a three story house.
If you are not sure whether your house or flat will come within the definition, have a word with someone at your Local Authority. Generally they will have a separate department which deals with HMOs and the licensing of HMOs.
Note that in some areas Local Authorities have introduced additional licensing requirements, so if you have three or more lodgers (who are not family) it might be a good idea to check with them. However if you only have two non family lodgers you will be safe.
If you find out that your property will need licensing, you will have to get the license before letting to your third non family lodger. This means completing the relevant form and paying the license fee. The fee varies from local authority to local authority. In some places it is under £100 but in others over £1,000. It will normally last for five years.
If you want to contact your Local Authority to ask about this, you will find contact details in my >> Local Authority Directory.
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What is your experience of the things in this section? Have you had problems getting permission to rent to a lodger because your home is an HMO? If you let to more than three lodgers have you had to apply for a license yourself? How helpful have your Local Authority been when you asked them for advice?
If you are a landlord or a tenant, you will help and guidance on Tessa's other sites, Landlord Law and the Landlord Law Blog.
[...] Day 7 – Will taking in a lodger turn your property into an HMO? Something very much to be avoided if at all possible, this tip explains how [...]
Hi,
My house has 3 stories (one being a recent loft conversion) and i am intending have no more than two lodgers in my house, plus my girlfriend. My partner will pay money to me to cover bills, and use. Does she qualify as a lodger in the eyes of the law?
I am uncertain whether I will require to apply for an HMO licence. With only two lodgers I understand I will not require an HMO licence (even though the house is 3 story), but with my partner as a ‘third lodger’ i would need to apply for the licence. Is this correct?
Many thanks for the great advice on this site
I am afraid you will have to speak to someone at your local authority. Only they can decide on this.
Hi I currently live in a HMO property with 2 friends. So there are 3 names on the tenancy agreement. One of my house mates Girlfriends has moved in and initially she was supposed to be staying for 2 weeks but is now my housemate is intending on her staying for the duration of our tenancy agreement. Is this something that could potentially breach the HMO license? Additionally his girlfriend is intending on applying for Job Seekers Allowance using the property as her registered address could this also lead to complications with the license?
Thanks in advance
Hi Kieron. It really depends on what the terms of the HMO licesne is. If it does breach the license conditions, your landlord is likley to take steps to evict you as otherwise he may be at risk of losing his licesne. Note that if you are joint tenants he will have to evict all of you as you cannot evict one of several joint tenants. You are all collectively ‘the tenant’.
So it will be up to you tenants to regularise the situation.
If you have any other questions not that this site is for Lodger matters only – questions regarding tenants should be addressed to my Landlord Law site or blog.
I Moved out of the family home to go to college. I’m 16 rented a rental house on a short hold tenancy from my mothers business. I took in a lodger
who I don’t no. My cousin stayed with me for a couple of months on two separate occasions when he was unemployed and he claimed benefits. The lodger only uses his room, bath room and toilet. My cousin and I share everything apart from bedroom and some food. The council tax say as far as they are concerned it’s a HMO.
This does not seem to comply with lodger HMO and housing act law discussed on this site?
Unfortunately the definition of an HMO for Council Tax purposes is completely different.
The HMO definition looked at here is that in the 2004 Housing Act, and is about whether you need to comply with the HMO Management Regulations and be licensed.
The definition of an HMO for planning purposes used to be different too, but now it is very similar: http://www.lodgerlandlord.co.uk/2010/04/26/planning-permission-hmos-and-lodger-landlords/
I agree, all these different definitions for what you would have thought was the same thing is very confusing.
Hi,
Basically I’m not on the tenancy agreement and the Ll doesn’t know that i’m staying at his student property, there are 5 furnished beds in total but it was let as a 4 bed with 1 bath and kitchen. Do I have to tell the LL that my friends are letting me stay? even if im not paying rent to anyone? also how do you find out if the dwelling is an HMO and how would I find out what restrictions may have been implemented as in only to use 4 rooms?! Also does it affect the HMO liscense if i’m not a student but the rest of the 4 in the house are?
thanks
It a way, this is something between the landlord and his tenants (who technically will be your landlord). However if all the other tenants are students, and you are not, this may make the property as a whole liable for Council tax. This will not be to anyones advantage.
I believe you can find out about properties’ HMO licenses from the Local Authority – take a look at their web-site. Some are more informative than others.
Hi,
I am slightly confused by the document –
“Under the Housing Act 2004, a property is classed as an HMO if there are three or more occupiers who form two or more households and who share a kitchen, bathroom or toilet.” So one landlord, and two non-family tenants living in one property would be classed as an HMO but further on in the document you state that “As a live in landlord, you are allowed two ‘non family’ lodgers before your property can be classed as an HMO.”
So, as a live in landlord, with two paying tenants is my house an HMO? And is it enough to have a resident landlord tenancy agreement with my tenants. Many thanks for your reply,
Mehdi
Basically if you have two lodgers you should be all right. It is when you have three or more that it can be an HMO.
You need to work out if they are tenants or logers: http://www.lodgerlandlord.co.uk/2010/03/09/the-five-main-differences-between-a-lodger-and-a-tenant/
Ideally you will want them to be lodgers, not tenants. You can buy a lodger agreement from this site here: http://www.lodgerlandlord.co.uk/shop/
I rent a 3-bedroom house jointly with another person, non-relative. If our landlord takes in another tenant, due to council fire regulations, it will become a HMO and will require alterations, so there is not a third tenant. The Citizen’s Advice Bureau said I can have a non-paying house guest for as long as I want, as long as they don’t damage the property or bother the neighbours. But they did not specify if it matters that it is a non-HMO, and I did not ask.
So if my guest has a permanent address abroad, and my house address as a term-time address here (Uni student), and is not paying any rent to me, can they stay as long as they want? If not, is there a maximum time they can stay? How can I prove that this person has a different primary/permanent address, and is therefore not a lodger? In my understanding lodgers are paying, visitors/guests are for free, is that right?
sorry – I need to specify: we are 2 tenants, not lodgers, our landlord does not live with us. I wanted to know if taking in a friend for free counts as US having a lodger.
Many thanks!
I think you would be all right having a friend to stay for a couple of days or even a week or so. But I would not advise having someone stay permanently, whether they pay rent or not.
In my home I will soon be letting three bedrooms, each to a lodger, and we will all share kitchen bathroom lounge etc.
Would I be creating an HMO? I read on here that “Under the Housing Act 2004, a property is classed as an HMO if there are three or more occupiers who form two or more households and who share a kitchen, bathroom or toilet.”
So it seems my home WON’T be an HMO as we are NOT “two households” but only one; however…later you say:
“As a live in landlord, you are allowed two ‘non family’ lodgers before your property can be classed as an HMO. So, if you take in three non family lodgers your property will probably be an HMO.”
No mention of being “two households”.
So, will I be creating an HMO or not?
Thanks
It is always very difficult to give yes / no answers to quick questions like this as the real answer is generally “it depends”. I think it very likely that it will be an HMO, but not (for example) if one of the lodgers is a family member such as your cousin.
The act defines what a household is and I summarise this in the post above.
If you are worried about this, the best people to ask are the Local Authorities who police the regulations.
Hello,
My huband and I were hoping to get 2 lodgers; however we have an extention to our house that would enable us to lock a door on the ground floor and also lock one upstairs that would ‘create’ private living areas of two bedrooms and a shower room upstairs and a living room and kitchen diner downstairs so we have some privacy.
The rest of the house includes the front door, hallway, kitchen/diner, living room, bathroom, two double bedrooms and a single bedroom.
We would share the front door, stairs and hallway and retain the small bedroom for family members to stay, (my disabled daughter visits for the weekend each fortnight and our grandchildren come stay with us and the bathroom would be used by them at these times. We would also use the dishwasher and some storage in the kitchen + fridge/freezer. is this situation an HMO or just lodgers in our house?
Lodgers and and HMOs are not either or. If you take in enough lodgers you will have an HMO. Read the post.
I think you mean, will it be a lodger or a tenancy. It sounds to me as if it may be a tenancy rather than a true lodger situation. I suggest you read the relevant post on this blog about how to prevent a tenancy.
Hi, I plan to convert the loft so my dad can move in. I already have two lodgers. I am no so worried about it becoming an HMO, but more concerned about the mortgage providers opinion, or if we will invalidate any insurance. If my dad doesn’t wantt to stay long term I will meant to recoup the cost of the loft conversion by renting out that floor. Can you invisage any problems with this?
Thanks
Steve
@Steve If you are worried about HMO issues it is really best to speak to your Local Authority as the situation varies across the country. Some Local Authorities have additional HMO regulations.
I have a 1 bedroom flat (1 bedroom, 1 lounge, 1 kitchen, 1 bathroom). The bedroom and lounge are large, so could both be rented out as good size rooms.
Under the ‘rules’, if I rented each room out to a single person, please confirm that this is fine and would ‘not’ be an HMO….it’s effectivey 2 sharers? Is this correct please?
Secondly, what if one room was rented to a couple? This would be 3 occupiers in total?….presumable now it’s an HMO?
…but what if that couple were married and therefore family/related? (or if 2 sisters for example)
My final quastion, is about ‘shared’ facilities. The bedroom has an en-suite, and is big enough to to add a kitchenette (thus effectively creating a studio / bedsit). The other room (formerly the lounge) then has ‘exclusive’ use of the kitchen and the bathroom, so irrespective of the number of occupiers, there would be no shared facilities between the rooms, as each one is ‘independent’. What would this be?
Thank you very much,
Jenny
@Jenny If you are just renting out the one room then you should not be classed as an HMO. Although check with your Local Authority as some areas are introducing extra rules.
If you rent to a couple, whether they are married or not, they will count as one ‘family’ unit.
This is the same whether you rent to them as lodgers or as a tenancy. However as discussed elsewhere on this site, renting out a room in your flat on a tenancy (which it probably will be if it is self contained) is not a good idea and can get you into trouble with your mortgage.
for last three years since taking myself off incapacity benefit have rented rooms out in my house I own – to live- my only income. on average have rented out 2 to 3 rooms . atm i am renting out to a forth who is as i understand a nonresident as she just stays a few days a week whilst she lectures at university and then goes back up to her fam up north for rest of week and weekend. I understand under new legislation i am not a manditory HMO as I have been renting out to multiple people before 2010 and the forth is a non resident. I am a single person with no partner or fam living with me. There is a cellar which is just used for storage which makes it 3 stories. not really sure why a cellar as storage should be taken as living area? I do have all receipts from all people who have stayed but is this enough to prove i have been renting out before 2010 legislation – as i have not knowingly needed to register this?
@Patrick I would really recommend that you speak to your local authority about this. The rules vary across the country and they will be able to explain what the situation is in your area.
Hi there
I would really appreciate some technical advice on weather what I am planning is legal
I have a 3bed semi with a loft room and ensuite. I currently live in the downstairs reception room and rent out the 3bedrooms upstairs.
What I would like to do is put a kitchen in the smallest room and have 2 lodgers/tenants who would use that and I will use the kitchen downstairs.
As far as I can make out it will NOT be an HMO as i will just have 2 lodgers.
I believe in order to install a kitchen upstairs I just have to inform building control that I am changing the use of the room.
So, provided my lodgers still have access to my part of the house ie the downstairs, am I breaking the law in any way??
Any help would be really appreciated.
@Matthew I suspect it will not make an HMO but just check with your local authority as they sometimes introduce separate rules.
I can’t see how what you are doing will be illegal, assuming you comply with any HMO rules and planning regs. However you may find that you have created a tenancy rather than a license/lodger situation. There are articles about this on this blog.