A house in Multiple Occupation, or HMO, refers to properties shared by three or more tenants who are unrelated. Therefore as a general rule, families homes cannot pay claim to being a house in multiple occupation unless there are two non-family members paying rent on the property – a situation that rarely occurs.
Given these simple regulations, the term HMO can typically be applied to shared flats and houses, bedsits, bedsits, boarding houses, hotels and bed & breakfasts with permanent residents.
HMOs are generally more profitable than other residential lettings, but with this fact comes the point that successfully managing a HMO requires far more work and initial cost.
To learn about HMO properties in greater detail download our helpful and insightful factsheet guide. Click on the PDF logo to download.