How To Manage HMO Property

Letting Landlords

Posted in Feb 10 , 2025

Managing a House in Multiple Occupations (HMOs) in London is tricky. It requires deep knowledge of the latest laws, property market analysis, and strong communication with tenants. With the new laws already on the verge of hitting the economy, landlords must be cautious to ensure tenants are well taken care of in all departments before letting. If you are not very familiar with the term, here’s a brief:

What is an HMO?

A House in Multiple Occupations (HMO) is a property utilised by at least three tenants from separate households, all sharing facilities like a bathroom and kitchen. As landlords, dealing with HMOs is challenging as you have strict regulations to follow to keep up with tenant safety standards and house maintenance. There are plenty of types of HMOs, including:

Small HMO: Three or more tenants from different households sharing common facilities on the same property.
Large HMO: Five or more tenants from different households sharing the same property. This type of HMO requires a special licence.
Student HMO: This HMO is meant for students and is generally exempted from the tax. However, all other HMO regulations apply to it.
Converted Buildings HMO: Buildings that are changed into flats do not meet the new building regulations but can fall under the HMO classification.

What is required by HMO Landlords?

Landlords are responsible for many tasks to ensure they obtain and run HMO properties, or they can hire a reputable estate agency. Here are some of the main tasks they need to perform:

Get the required HMO license from the local council so they don’t get any penalties for not having a valid permit.
Conduct fire, gas, and all other risk assessments to ensure everything works, including smoke alarms, gas supply, and electricity wiring.
Landlords must ensure that their properties are well maintained by cleaning and repairing them occasionally for the tenants.
Check and validate the tenants to ensure they can live in the UK.
Make a detailed tenancy agreement with the rent amount payment schedule communicated transparently.
Protect the deposits within the approved government scheme in the given period, 30 days of receipt.

New official laws for HMO property

There have been some important legislation updates in 2025, including:

The abolition of Section 21 which has removed the ‘no-fault’ eviction process and now requires that landlords produce valid reasoning before they can terminate the tenancy contract.
New laws that require properties to meet strict high energy standards and performance targets are being introduced.
New regulations protect tenants from unfair rent increases or landlords who do not handle repairs promptly.

How to manage HMO property?

It can be overwhelming for a single landlord to manage everything whilst focusing on growing their portfolio. Here are some challenges:

Landlords must stay ahead of ever-changing laws to ensure their property remains in the government's good books.
They must be available for tenants to solve conflicts and keep them attached whilst overlooking their backgrounds.
Landlords also need to regularly inspect their properties and do all repair and maintenance work so there are no standard violations.

It seems too much work. Well, it is! You would have to work with multiple legal papers at once and always take appointments with local councils. This will leave no time for you to focus on growing your portfolio. But there’s a solution.

Cribs Estate to the rescue!

We have been in the London property market for over a decade and are already helping hundreds of landlords manage HMO property. Cribs Estates specialises in letting and management of all HMOs across London. We ensure both landlords and tenants are happy with the deal and that every corner of the property is in the best shape every day of the year. Here are some of our top HMO management services:

Our experts contact the local authorities to obtain the proper licence for your property within the HMO classification.
We stay current with the new regulations to provide the best guidance based on legal and safety standards.
Our panel of experts conduct background screening of tenants to validate their reliability and commitment to the property.
Your property will get regular inspections and maintenance checks from technical persons to keep it in the best condition.
Landlords will never have to worry about tenant disputes and queries the tenants, as we manage to keep their relations healthy.

Cribs Estate is committed to offering landlords the best possible experience managing HMO property efficiently. We spend time and money gaining local knowledge of the latest happenings and law changes.

Making Cribs Estate your ideal partner ensures peace of mind about your property whilst ensuring maximum monthly rental yields without gaps.

Want us to manage your HMO property? Talk to our expert estate agent today to know the most profitable way you can manage your HMO.

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