If a property is to be let to multiple occupiers who are not a family unit, the local authorities may class it as an HMO. This type of rental property can be an excellent investment opportunity but they are subject to additional regulation, licensing and inspections for the safety of the occupants.
What is an HMO?
A rented property is considered a House in Multiple Occupation if it is occupied by three or more people who share facilities such as the kitchen or bathroom, who form two or more 'households'. It’s sometimes called a ‘house share’. We also recommend that you seek guidance from your local authority about what they consider to be an HMO.
What is meant by the term 'Household'?
A household is either a single person or members of the same family who live together. A family includes people who are:
married or living together (including same-sex couples)
relatives or half-relatives (e.g. grandparents, aunts, uncles, siblings)