For the last few decades, private rentals and especially Houses of Multiple Occupation (HMOs) have become more and more popular with a large increase in landlords.
But alongside that, we have seen a huge increase in the level of Legislation, Regulations and the introduction of Licensing by many councils across the UK and here in Manchester.
And breaching those rules can carry unlimited fines with civil penalties of up to £30,000 for each and every breach of the relevant Legislation, Regulation or Licence condition.
These are just a few examples of the breaches that Landlords and HMO Landlords could be fined for…
• No licence
• Wrong licence
• Unintentional HMO ( You’re liable even if you didn’t know)
• Breach of Management Regulations
• Breach of Right to Rent
• Breach of Planning
• And many, many more
And remember each breach could result in a separate £30,000 fine as well the potential to lose your “fit and proper person status” which would result in not being able to hold any licences to let property.
Let’s look at one of the breaches that has caught landlords out and that is an unintentional HMO.
In Manchester, for example, you need planning permission to let a house out to more than three or more unrelated people, if the house is not currently used as a house in Multiple Occupation. This comes under Article 4 Regulations.
So, what is an unintentional HMO?
You may have a single let property that is let under a standard contract to a single tenant or couple.
Your single let is then turned into what is legally an HMO without your knowledge (3 or more unrelated people living there).
You are then legally responsible for complying with ALL the HMO legislation such as; fire doors, closers, smoke alarms, maintenance, grass cut, nothing in common-ways and many other requirements.
So, if your property is then in an additional licensing area you could be liable for a civil penalty which as of today is up to £30,000 for non-compliance.
Many landlords that have been caught out by this, have appealed their fines as they were not aware and hadn’t authorised any change but I’m not aware of any that won those appeals.
Something to be aware of if you have a larger property you let or plan to let. If you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
Keep up with the latest from Armistead Property on…
Facebook ➡️ https://www.facebook.com/ArmisteadProperty
Twitter ➡️ https://twitter.com/ArmisteadMcr
YouTube ➡️ https://www.youtube.com/channel/UCElC71ezG9h2tofxtEM05DA