Adams Estates' Expertise in HMO Properties in Reading, Berkshire

Since 2004, Adams Estates has specialized in managing Houses in Multiple Occupation (HMOs) in Reading, Berkshire. Their extensive experience in this field ensures compliance with regulations and maximizes returns for landlords.

1 What is a HMO?

An HMO is a property rented out to three or more people who share facilities like the kitchen or bathroom and form more than one household. Understanding local authority regulations is crucial for HMO classification.

2 Understanding 'Household'

A household includes:

• Married couples or cohabitants (including same-sex couples)
• Relatives or half-relatives (e.g., grandparents, aunts, uncles, siblings)
• Step-parents and step-children
• Foster parents and foster children

3 Benefits of Letting an HMO

• Higher Rental Yields: MOs often produce higher rental yields than traditional rentals.
• Robust Demand: There is strong demand for shared living accommodations.
• Reduced Impact of Voids: Multiple tenants mean rental income continues even if one tenant moves out.

While HMOs can be lucrative, they require more management due to frequent tenant turnover and multiple tenancy agreements. Adams Estates provides comprehensive management services to handle these challenges alongside regular HMO inspections and we deal with the local authority for regular inspections.

4 HMO Licensing

Licensing is mandatory if:

• The property is rented to 5 or more people forming more than 1 household.
• Tenants share toilet, bathroom, or kitchen facilities.

Even smaller HMOs may require licensing depending on local council regulations. Adams Estates ensures all licensing requirements are met and maintained.

5 Responsibilities of HMO Landlords

Landlords must:

• Ensure the house is suitable for the number of occupants.
• Provide annual gas safety certificates.
• Install and maintain smoke alarms.
• Provide safety certificates for electrical appliances.
• Maintain communal areas and facilities in good repair.
• Ensure appropriate refuse storage and disposal.

Minimum room sizes are also regulated:

• 4.64 m² for one child under 10 years
• 6.51 m² for one person over 10 years
• 10.22 m² for two people over 10 years

Adams Estates assists landlords in meeting these requirements to ensure tenant safety and regulatory compliance.

6 HMO Mortgages

HMO mortgages allow for multiple room rentals, differing from standard buy-to-let mortgages. Options include:

• New and existing HMO mortgages or remortgages
• Development loans for construction
• Refurbishment loans

7 Planning Permission and Article 4

Different property types fall under planning classes:

• C3:Standard residential family home
• C4:Small HMOs housing 3-6 people
• Sui Generis:** Large HMOs with 7 or more people

Planning permission is always required for properties in the Sui Generis class. Small C4 HMOs usually do not require planning permission unless in an Article 4 area, where additional restrictions apply. with our in-depth knowledge Adams Estates helps navigate these planning requirements

8 HMO Council Tax Rules

Landlords are responsible for council tax in HMOs with individual room tenancies. Rents typically include utility bills and a contribution towards council tax, for Student HMOs they would be liable to pay, but will apply for an exemption as they are full-time students.

9 Furnishing an HMO

Standard furnishings include:

• A bed (4ft or double), wardrobe, chest of drawers, bedside table
• Desks for tenants working from home
• Kitchen appliances: fridge/freezer, storage, washing machine, oven and hob, tumble dryer, microwave
• Living area furniture: dining table, chairs, sofa, TV, storage space

Adams Estates ensures high-quality furnishings to attract professional tenants and manage wear and tear in communal areas.