Member Article

Landlords still oblivious of house share rules

A leading North East agent is warning that a “scary” number of landlords are still in dark about house share regulations – and could be risking thousands of pounds of fines as a result.

Courts have recently handed landlords fines from £7000 to more than £20,000 for failures relating to the mandatory licenses they need for houses of multiple occupation – typically flat shares and student houses rented out by at least three people who are not part of the same ‘household’ (such as a family) but sharing kitchens and bathrooms.

Renting out a HMO places additional responsibilities on landlords, including:

• Additional fire safety measures – including smoke alarms safety certificates for all electrical appliances are.
• Supplying their local council an updated gas safety certificate every year.
• Ensuring their property is not overcrowded, with shared areas kept in a good condition with adequate cooking and washing facilities.
• Applying for a separate license for every HMO they rent out and renewing them at least every five years.
• Various other obligations, as determined by individual local authorities.

Ajay Jagota, managing director of KIS Lettings, who manage properties for some 700 landlords across the North East from branches in Sunderland, North Tyneside and South Tyneside, advises landlords to consider outside help to ensure they don’t make costly mistakes.

He said: “We’ve come a long way since 2007 when around half of landlords had no idea about HMO regulations, but recent news reports made it clear that a scary number are still unaware they need licenses, or just aren’t bothering to apply for them.

“What landlords need to remember is if they don’t meet their legal responsibilities they’re risking huge fines or even jail.

“My guess is that many of the landlords falling foul of the law aren’t wilfully trying to evade their legal responsibilities – they’re just DIY landlords who own only one of two properties as modest pension plans or to manage family assets as best they can.

“Landlord law is very complicated – especially when it varies from council to council and changes from week to week - and even when you what you have to do it can be incredibly hard to stay on top of actually doing it when it’s just you.

“Local authorities are starting to really crack down on landlords who don’t get HMO licenses, so this really is one of those occasions where spending a little on professional support now can save you thousands later.”

This was posted in Bdaily's Members' News section by Ajay Jagota .