How to become a HMO landlord

Renting out a house in multiple occupation (HMO) comes with more responsibilities than a standard let, but it can also be a financially rewarding way to manage your property portfolio. Below we take you through the key considerations.

An HMO, short for House in Multiple Occupation, is a property occupied by at least three people forming more than one household who share facilities such as a kitchen or bathroom.

Here’s a breakdown of the key definitions:

• A ‘household’ is either a single person or members of the same family living together

• If you have a four-bedroom property with one family in two rooms and another family in the remaining two rooms, it may qualify as an HMO if facilities such as kitchens or bathrooms are shared
• Your property counts as a large HMO if five or more tenants from more than one household live there
• An HMO landlord is someone who rents a house or flat to at least three tenants from more than one household who share amenities

Becoming an HMO landlord involves more preparation than letting a standard property, so before anything else, it’s worth understanding your legal responsibilities.  

You’ll also need to obtain a licence from your local council. We cover this in more detail below.

An HMO property has at least three rentable rooms and is suitable to house multiple occupants. If you already own a property, you’ll need to check whether it can be adapted to meet HMO standards.

HMOs often require a sizeable upfront investment. You’ll need funds for a deposit, any necessary refurbishments or upgrades, and ongoing maintenance.

Most HMO landlords take out a buy-to-let mortgage, which typically requires a larger deposit than a standard residential mortgage.

Before letting the property, you may need to install fire doors, alarm systems, and locks on bedroom doors, among other safety features. It’s advised seeking professional advice on what your specific property needs before you start.

Once you’re up and running, you’ll have ongoing legal obligations to meet. These include:

Licensing

Some HMOs require a licence. Large HMOs (with five or more occupants forming more than one household) must be licensed, while smaller HMOs may also require a licence depending on your local authority’s additional licensing scheme.

Operating without one (where a licence is required) is a criminal offence and can result in significant fines.

Fire safety

Under the Regulatory Reform (Fire Safety) Order 2005, which applies to the common parts of HMOs, you’re legally required to carry out a fire risk assessment and put appropriate measures in place. This typically includes smoke alarms on every floor, fire doors, and clearly marked escape routes.

Property standards and safety

Under the Housing Act 2004, you must:

• Keep the property free from serious hazards, assessed using the Housing Health and Safety Rating System (HHSRS)
• Maintain the structure, heating, plumbing, and electrics
• Provide proper ventilation and drainage

You must also provide:

• A valid Gas Safety Certificate (renewed annually)
• An Electrical Installation Condition Report (EICR), renewed every five years
• Furniture that meets fire safety standards


Room sizes and occupancy limits

The law sets minimum bedroom sizes for HMOs:

• Rooms used by one adult must be at least 6.51 square metres
• Rooms for two adults must be at least 10.22 square metres
• Rooms used by a child under ten must be at least 4.64 square metres

Local authorities may set higher minimum room sizes, so it’s advised to check the specific requirements in your area.

More information: https://www.gov.uk/renting-out-a-property/houses-in-multiple-occupation-hmo

No. As with any other tenancy, you need to give tenants reasonable notice, usually at least 24 hours in writing, before entering the property for a non-emergency inspection or visit.

The exception is genuine emergencies, such as a gas leak or flood, where immediate access may be needed to prevent harm or serious damage.

Note that if you live in the property yourself, these rules may not apply in the same way. It’s worth seeking legal advice if you’re unsure about your specific circumstances.

Yes, in many areas HMOs are in strong demand. That said, the right tenant profile depends on where your property is located:

• Students are one of the most common groups in HMO accommodation. If your property is near a university, you’re likely to find consistent demand
• Young professionals often opt for shared housing as it lets them live in a larger property with more facilities while only paying for their room
• Families are generally less likely to want to share a property with another household

Understanding your local tenant market before you invest can help you let more quickly and reduce void periods.

Your local council will want to be satisfied that your property is suitable and that you’re a fit and proper person to manage it.

They’ll typically look at:


• Whether there are enough bathrooms, toilets, and kitchen facilities for the number of tenants
• The general condition and safety of the property
• Your track record as a landlord and how you’ve managed properties in the past
• What plans you have in place for ongoing maintenance and compliance

Some councils may carry out a pre-licence visit, so it’s worth preparing thoroughly before you apply.

If you decide HMO letting isn’t right for you, there are several steps to follow.

You’ll need to wait until each tenant’s tenancy comes to an end before you can reclaim the property.

Under the Renters’ Rights Act, which came into force on 1 May 2026, all tenancies have automatically become periodic assured tenancies with no fixed end date. This means you’ll need a valid Section 8 ground to regain possession rather than relying on a Section 21 notice or a fixed-term expiry.

You should also follow all legal notice requirements when informing tenants that you plan to stop letting the property.

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Explore landlord insurance options designed specifically for HMOs.

Below are some frequently asked questions about becoming an HMO landlord.

In most cases, yes. If your property is rented to five or more tenants from more than one household, a mandatory licence is required by law. Smaller HMOs may also need a licence depending on your local authority’s additional licensing scheme. If you’re unsure, you can check with your local council to confirm what applies to you.

An unlicensed HMO is one that requires a licence but doesn’t have one. This might happen because the property doesn’t meet the minimum standards for a licence to be granted, or because the landlord has not applied for one. Operating an unlicensed HMO where a licence is required is a criminal offence and can result in significant fines.

No. An HMO licence is personal to the licence holder and the specific property. It can’t be transferred to another person or to a different property.

Licensing fees vary by local authority. It’s best to check directly with your local council for the current fee in your area.

Yes, landlords can live in their own HMO. However, if you live in the property, some of the rules around notice periods and access rights may be different. It can be worth seeking legal advice on how this affects your specific situation.

An HMO must have at least three tenants from more than one household. The maximum number of occupants will depend on the size of the property, the number of facilities available, and any conditions attached to your licence.

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Just Landlords accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.