When a property is no longer recognised as a HMO and is seen as self-contained flats

 

There is a fine line which many landlords cross when it comes to the legal definitions of house classes as perceived by enforcement officers. I regularly see many landlords fall foul of enforcement officers, and are given no choice but to quickly amend their properties before matters are escalated and legal court proceedings take place.

To avoid this as investors we must understand the definition of what constitutes a HMO as opposed to a self-contained flat:

HMO:

Housing Act 2004: 3 or more tenants that live in the property that are not of the same family and are not from 1 household.  Tenants in the property have to share the toilet, bathroom or kitchen facilities with other tenants.

Self-contained flat:

Housing Act 2004: A separate set of premises (whether or not on the same floor) which forms part of a building; either the whole or material part of which lies above or below some other part of the building; and in which a toilet, personal washing facilities, and cooking facilities are available for the exclusive use of its occupants.

One of the most common mistakes HMO landlords make is to add cooking facilities into the room. Even tea making facilities will fall foul if they allow cooking and have an additional sink. Ensuites, fortunately, are a legal addition to rooms but multiple kitchens create more potential sources of fire. This equates to a more stringent implementation of fire regulations and makes insurance more difficult to get. On lending products, you will often find only commercial lenders will offer finance on a property with more than one kitchen.

If your rooms are seen as self-contained units, you will be liable for safety standards. All building regs including tenancy deposit claim compensation will have to be adhered to and you will require full planning for a legally accepted conversion.

It should also be noted that any substantial works done on the HMO property could result in the re-banding of its council tax. The more self-contained the rooms the greater the risk of re-banding.

Some landlords (and I am not endorsing this practice) use a kitchenette with a microwave, toaster, and kettle, which can be used to increase the tenant rent. These appliances are temporarily removed upon any prospective planning officer/council visits and returned to kitchenettes upon a satisfactory review.

For peace of mind and overall money spent, it would be advisable go through the conventional channels of planning, paying close attention to your legal obligations and constraints. Rather than running the risk of enforcement notices, possible legal action and the pitfalls of having to (at cost to yourself) remove all the changes made and meeting compliances.