A house in multiple occupation (HMO) is a type of rental property where common areas exist and are shared by more than one household. HMOs are typically subdivided from larger houses designed for and occupied by one family. Some housing legislation makes a distinction between buildings occupied mainly on long leases and those where the majority of the occupants are short-term tenants. The definition of an HMO has its origins in fire safety legislation, following a series of publicised, preventable deaths in overcrowded buildings.
To be classified as an HMO, properties must have four common features before being classified:
- Occupants are not forming a single household.
- Occupants must be using the property as their only or main residence.
- The accommodation must be used solely for residential purposes.
- Rent is paid by at least one of the occupants.
HMOs can include shared houses, student accommodation, or professional living spaces. They are frequently in high demand, as an owner can achieve far greater rental yields from more tenants without multiplying their property ownership costs. HMOs can be a house, flat, or bedsit that is occupied by people who are not part of the same family. HMOs can be rented out to students or young professionals who may be looking for a long-term rental.
