A House in Multiple Occupation (HMO) is a type of rental property that is occupied by more than one household and is being used as a main residence by the occupants. The definition of an HMO has its origins in fire safety legislation, following a series of publicised, preventable deaths in overcrowded buildings. The term can be quite broad and may include, but is not limited to:
- Hostels
- Buildings containing numerous bedsits with some shared facilities
- Shared houses
- Lodgings
- Buildings containing flats with their own facilities, but are not self-contained
- Private halls of residence
- Refuges
- Blocks of converted flats
- Employee accommodation
A good rule of thumb is that a property which is occupied by three or more tenants, who form more than one household and share facilities such as a bathroom, toilet, or kitchen, could be deemed an HMO. HMOs can be a good investment as they can provide higher rental yields than traditional buy-to-let properties. However, owning an HMO property also comes with additional responsibilities and regulations, such as complying with licensing rules and ensuring the property meets certain standards.
