A house in multiple occupation (HMO) is, in simple terms, a property rented out to at least 3 people who are not from one ‘household’ (a single household with members of the same family), but share facilities like the bathroom and kitchen. It’s sometimes called a `house share’. Gov.UK

 

A HMO is considered small if there are at least 3 tenants forming more than 1 household; with toilet, bathroom or kitchen facilities being shared with other tenants.
A HMO is considered large if there are at least 3 storeys, having at least 5 tenants forming more than 1 household; with toilet, bathroom or kitchen facilities shared with other tenants.  
Landlords may require a licence for a small HMO depending on the Local Authority area the property is in. Landlords must have a licence to rent out a large HMO. An HMO not within the small or large HMO definition is termed Sui Generis; this may need planning permission rather than licence. Every applicable property requires a separate licence and each licence needs renewal every 5 years. All property is susceptible to planning law.
In all areas of landlording, HMO’s demand additional maintenance; in return, there can be better yields.  Whether looking to purchase or looking to convert, always seek advice about HMO property from a suitably qualified Solicitor – ensure they have expertise in this area and are relevant to your needs.
Article credit: Copyright SUF © 2017