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HMOs (House of Multiple Occupancy), If planning is required - Coggle…
HMOs (House of Multiple Occupancy)
HMO licence?
Do you need a licence?
4 or fewer occupants (most areas) - NO
5 or more occupants (most areas) - Yes
Leeds - ???
Bradford - ???
How do you get a licence?
Apply on council website
Do you need to wait for a licence before moving in tenants? - NO, you only need to apply.
How much does it cost?
Leeds - ???
Bradford - ???
How long does it last?
Leeds - ???
Bradford - ???
What are the requirements?
Leeds - ???
Bradford - ???
Get the council to come out, to advise, before applying.
Is it guaranteed?
No.
Get council HMO team to advise prior to offer/purchase
Planning permission?
Do you need planning permission to turn a property into an HMO?
Only if it's a change of use
7 or more occupants - YES
6 or fewer occupants - NO
Or if in an Article 4 area
Selective licencing?
Some areas have selective licensing
Leeds? Bradford?
Article 4?
What is Article 4?
What does it mean for HMO investors?
Buy an existing HMO
- refurb, increase value, rents
Leave the area
- look for setting up an HMO in other areas (where there is no Article 4)
Will need planning
- to turn an existing house into an HMO
Own a property prior to Article 4?
Prove already been using property as HMO
(grandfather rights?) - show ASTs, anything else?
Create Google My Map of your area
- add Article 4 areas, more visual
Pros & Cons of HMOs?
Pros
Cashflow
- receive multiple rents for one property
Recession proof
- when a renter's circumstances change (maybe due to reduced income) renting their own place may become less affordable, and HMOs are more affordable.
Cons
Higher tenant turnover
- tenants typically shorter term tenants (6-12 months)
More management
- house with 5 people likely going to be more work than a single-let.
HMO demand?
Use online platforms
- like SpareRoom.com to check demand.
Speak to local agents
- letting agents and HMO managers
Speak to local landlords
- property investors who already operate HMOs in your chosen area
Search in proximity to
- city centre, hospital, university, jobs, etc
HMO ROI?
HMO management companies?
How to find one?
Google search
- HMO management company
Referrals
- ask existing HMO landlords
Search SpareRoom
- look for agents advertising rooms, and call them
Fit out
See Relo: How to Turn a Good HMO into a Great HMO for lots of good tips.
If planning is required
Speak to council first
- get a feel for the likelihood of getting approved
Speak to a planning consultant
- for professional advice
Submit a pre-application?