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How Do I Get A HMO Licence?

 

HMO Properties Houses in Multiple Occupation (HMOs) have received a lot of press attention recently, both good and bad. As a result, people are now either wishing to jump onto the HMO bandwagon, or want nothing to do with them.

If you have any interest in property investment whatsoever, you must familiarise yourself with HMO regulations.

Landlords already running HMOs in England had until 3rd July 2006 to present their applications to their local councils. Any landlord who owns a property that has been let out to sharers may thus be breaking the law if he has not already registered that property.

From 6th April 2006, the Housing Act 2004, has meant that there is a new definition of a House in Multiple Occupation (HMO). Anyone considering a career in property investment in the UK should familiarise themselves with the Housing Act 2004. You can easily download this from the internet.

HMO legislation has been introduced for several reasons:

• To improve the condition of rented housing stock.

• To reduce the number of unscrupulous landlords letting substandard and potentially dangerous property.

• To improve management standards of rented property.

• (Indirectly) To increase revenue for local councils through what is effectively a landlord’s tax.

• (Indirectly) To compile a register of rented property stock.

It is hoped that HMO legislation will result in a much better deal for tenants by removing rogue landlords from the system. However, as with most things, the better landlords will now have to go through additional red tape to provide a similar service to what they have already been providing.

To get a HMO licence you will need to submit a completed application form obtainable from your local council. As part of your application, you will need to include floor plans providing room sizes and an indication of current fire precautions in your property. You will be required to prove the safety of any fire detection system by providing a certificate issued by a suitably qualified engineer.

You will also need to submit a current Gas Safety Certificate. You can obtain this from any Gas Safe (formerly CORGI) registered engineer. An electrical safety inspection will also need to be conducted by a qualified electrician and an electrical safety certificate issued.

If you are providing any electrical appliances, you will need to have a PAT (Portable Appliance Testing) certificate issued by an electrician. This will cover items such as electric kettles and toasters etc.

You will also need to prove that you have suitable management arrangements in place. For example, deposit procedures, tenancy agreements and procedures for dealing with anti-social behaviour.

The final requirement is for you to be a ‘fit and proper’ person, by providing a Criminal Records Bureau (CRB) check. This will need to be dated within the previous six months. Your local authority will inform you if this is required.

 

 

Learn how to get a HMO licence here:

http://www.hmopropertyriches.com/

HMO Property Riches Property Negotiation TacticsProperty Tax Strategies

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Plan Your Property Purchase

For any new property that I buy and renovate, I will always make it compliant with any current regulations for that property type in that location. If I am unfamiliar with the location, I will contact the council and ask about minimum requirements. This way, there will be no ambiguity when I come to resell or let the property.

I will do this regardless of whether my intention is to use the property as a House In Multiple Occupation (HMO) or not. For example, I will aim to do the following works as a minimum during any property renovation:

• Install interconnected smoke alarms and heat detectors.

• Install fire doors to kitchens and bedrooms.

• Have the electrical installation checked and upgraded to current standards.

• Ensure gas fittings and appliance meet current safety standards.

This will save me time and money at a later date, especially if I decide to use the property as a HMO.

For any business, ‘Cashflow is King’. Whenever I buy property, I always invest for cashflow. There’s little point in buying a property in a great area for a lot of money, if you’re not making positive cashflow from day 1. Learning how to better manage cashflow can make the difference between your success and failure in business.

It doesn’t matter if you think that your favoured location will generate great capital growth. The question you need to answer is whether you will be able to sustain that capital growth on negative rental returns.

HMOs are a great way to obtain substantial cash flow from your properties. It is not uncommon to achieve up to 300% returns over and beyond single occupancy rentals in high demand locations all over the UK.

Since HMOs provide much needed affordable housing, particularly for younger people, there is a strong market for such accommodation.

A HMO property will not only give you additional cash flow, but you will also benefit from the usual advantages of owning property. For example, you will have good capital growth depending on location and market conditions. Furthermore, it is not always necessary to fill all the rooms to service any finance payments.

If you plan your property purchase carefully, you will be able to grow your portfolio quickly and with minimum effort. By applying some basic rules and understanding current market conditions, investing in property should provide you and your future generations an income for life.

A little bit of knowledge goes a long way:

http://www.hmopropertyriches.com/

HMO Property Riches Property Negotiation TacticsProperty Tax Strategies

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What Is A House In Multiple Occupation (HMO)?

 

Put simply, a House in Multiple Occupation HMO is:

• An entire house or flat that has been let out to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet.

A household is defined as members of the same family living together.

• A house that has been converted into bedsits or other non-self-contained accommodation and that has been let out to three or more tenants who form two or more households and share a kitchen, bathroom or toilet.

(A self-contained unit of accommodation is one which has a kitchen or cooking area, bathroom and toilet inside it for the exclusive use of the household living within the unit)

If the occupiers need to leave the unit to gain access to any one of these amenities then that unit is not self contained.

• A converted house containing one or more flats which are not wholly self-contained and which is occupied by 3 or more tenants who form two or more households.

For a property to be classified as a HMO, it must be used by the tenants as their only or main residence. Properties that are let to students and refugees will be treated as their only or main residence.

If your property falls into any of the above categories, you may need to apply for a HMO licence. In order to find out whether you need to obtain a HMO licence, you must contact your local council and speak to the Environmental Health Officer, who will advise you accordingly.

Every council has their own guidelines for HMO compliance, so the final answer will depend on the size and location of your property. I always advise my clients to call the council before buying a property that they are thinking of converting to HMO usage.

One simple phone call could save you thousands of pounds as you may find that very little is required to prepare your property as a HMO.

Regardless of your property location, you will definitely NEED a HMO licence if your property

1. has three stories or more (including usable basements or attics), and
2. is occupied by five or more people, and
3. those people form two or more households, and
4. the tenants share the kitchen, bathroom or toilet.

If the above applies to you and you don’t have a licence, then I would advise you to contact your local council immediately as you are most certainly breaking the law.

It will cost a neighbour or tenant the price of a phone call to report you, and this could cost you up to £20,000 plus recoverable rent!

Applying for a HMO licence may appear like a lot of work. However, when you’ve gone through the process once, you’ll find it much easier for any subsequent properties that you purchase.

 

 

Increase your property cashflow from HMOs Today:

http://www.hmopropertyriches.com/

 

HMO Property Riches Property Negotiation TacticsProperty Tax Strategies

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Is It Worth Getting a Property Mentor?

"Seek mentors who have done what you desire to do and who have become what you desire to be"

If you speak to any successful person you will find that he has or has had great mentors to get him to where he is today. If you want to become successful in property, I would advise you to find someone you can learn from and who can help you to take that first step. If at all possible, find a mentor you can speak to personally, rather than someone who will only speak to you if you are part of a group in a seminar-style setting.

A mentor will be someone whose work you admire. He will be someone who has achieved what you want to and is in a position to get you where you want to be quickly. A mentor will also have access to a network that you may wish to be part of.

For example, your property mentor will have a team of property finders, solicitors, financiers, surveyors, architects and builders etc who he uses in his daily business. Good professionals often take years to source. However, you could greatly enhance your chances of success by tapping into the same team that your mentor uses.

As a property entrepreneur, I have several mentors who have helped me to achieve quick results that would otherwise have taken me several years to attain.

A good mentor will

  • Coach you
  • Guide you
  • Nurture you
  • Challenge and criticise you to get the best results possible
  • ……and much more until you succeed

So how do I find a mentor?

There are several methods you should be using to find your ideal mentor. I’ve listed a few here:

  • Network

By attending networking events and meeting other successful property investors, you should very quickly be able to pick out a couple of people you think could help you in your property career.

It’s then a question of approaching them and asking them if they offer any mentoring. If they don’t, ask them if you can help them in their business for free in return for some general guidance – this normally works quite well.

 

  • Surf the internet

Use the internet to research existing property entrepreneurs in your area. Again, look for someone who has achieved what you wish to achieve and looks like someone you could work with.

 

  • Ask a friend

If you have any successful property investor friends, you could ask them to guide you. Alternatively, ask them if they have any mentors that they wouldn’t mind you working with.

 

  • Source authors of property books and courses

If there is any book or program that you have bought in the past and learned from, you may want to approach the author and ask him if he offers mentorship. This is a great way to find an established and recognized expert.

Once you have chosen a mentor, you will be spending a lot of time with him so please ensure he is someone you are comfortable working with him. Good communication is essential. Common goals and similar interests will definitely help here.

 

 

Get yourself a Property Mentor here:

http://www.millionairepropertymentor.com/

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The Property Business Is A Business Of Relationships

 

"You are the same today as you’ll be in five years except for two things,
the books you read and the people you meet" – Charlie Jones

To be successful in property, you need to develop lasting relationships with other people. What’s helped me to succeed in property investment more than anything else, has been the relationships I’ve had with other people.

If you want quick growth in property investment, you need to start building a team around you. This is something you need to work on from the outset. Your team should include solicitors, accountants, financial advisors, estate agents, letting agents, property finders, other property investors, plumbers, electricians, general builders and anyone else who could help you to achieve your goals.

Whenever I am looking for someone to join my team, I will always try to find someone based on referrals. I will ask family and friends if they know of anyone that could me help with my business. I also ask my current contacts.

For example, several years ago I had the need to acquire a new solicitor. Rather than going straight for the yellow pages, I asked my accountant if he knew of any proactive solicitors. He gave me the name of one such solicitor. I contacted her immediately and found her to be one of the best solicitors I have ever known and have retained her since. If I am unable to find anyone via my existing contacts, I will then search the local directories to source someone close to my offices. I always try to source local, as it will save me a lot of time should I need to go and visit.

When sourcing members of my team via this method, I always interview at least three candidates. My final decision is never based on price alone. I will always choose my advisors based on their knowledge of the subject matter and also any rapport that we build during our first meeting. I will never choose someone who appears to be very knowledgeable but fails to understand my business goals and personality.

Over the years, I have established a great team around me. We work together and have a good respect for each other. I always pay my advisors and workers on time and have a strong respect for them and their services. This works great because I am able to get jobs done quickly and efficiently as my team supports me in my endeavours. If you are new to property investment, I would advise you to find people that share the same work ethics as yourself to help you grow quickly in your business.

I offer regular advice and tips on all aspects of property investment to subscribers of my free property course.

 

 

Claim Your FREE Limited Edition CD and eBooks Right Now: 

http://www.PropertySuccessFormula.com

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Property Investment Courses

 

"Learning is the beginning of wealth. Learning is the beginning of health. Learning is the beginning of spirituality. Searching and learning is where the miracle process all begins", Jim Rohn

Investing in property may seem like todays flavour of the month. However, due to the large amounts of money changing hands, it is not something that you should try without proper training and guidance.

When I first started investing in property, I spent a lot of man hours educating myself. I bought every single book on property that I could lay my hands on. I spent a lot of time and effort attending workshops and seminars. When I had become confident of my abilities, I ventured out and bought my first property.

Buying my first property did not mean that I could now stop learning about property investment. In fact, it was the exact opposite. I was now spending more time learning the different property investment strategies; I was attending more seminars and courses and reading specialised books on investing. Had I stopped learning after my first purchase I would not be a successful property investor today.

A couple of weeks ago, I did some research to see what courses were being offered to help people get into property investment. Quite frankly, I was shocked by the results. I found single day courses and workshops ranging from £500 to £10,000’s. And, that’s not all.

I even found several portfolio companies requesting 6 figure sums in return for an ‘off the shelf’ property portfolio! Today, every other person appears to be offering a property investing course. How do you choose which one is right for you?

Firstly, my advice would be for you to not pay anyone to buy a property portfolio for you. If you want success in property, you need to understand at least the basics of property investing. Paying someone a truck load of money to buy a few properties for you will not give you this knowledge.

Attending property courses should by definition increase your knowledge of property investment. However, prior to parting with any money you need to address the following issues:

• What are the credentials of the course organizer? Is he/she a property investor himself and how much experience does he/she have?

The best person to advise you on property investing would be someone who walks the talk – there’s little to gain from a presenter who has never bought a property before.

• What are the course contents? Will advanced techniques be addressed?

It’s the advanced techniques used by successful property investors that will set you apart from all those other wannabe property investors.

• How many people will be attending the course?

A course attended by hundreds of people may lack the personal touch, but will present networking opportunities to you.

• How much and how long is the course?

Paying several thousand pounds for a one day course is too much. You need to weigh up the cost, length and contents before making up your mind.

• Will I be given the opportunity to network with other attendees of the course?

The property business is a business of relationships. You need to network with others in the same business as you will not be able to do it alone.

• What is the location of the venue?

Is it worth traveling hundreds of miles to a course that may be offered closer to where you live?

• What support will be provided after completion of the course?

Course attendees quite often become unstuck after attending a course. You need to find out if any support is offered after you complete the course.

Only once you are satisfied with your answers to the above questions should you part with any cash.

Be warned though, attending a course by itself will not make you into a successful property investor. What will set you apart from any other attendee on the course is your level of motivation and determination to succeed in property investing.

 

 

 

Do you have what it takes to become a Property Millionaire?

Apply here to find out:

http://millionairepropertymentor.com/

Millionaire Property Mentorship Programme  Millionaire Property Mentorship Programme Manual

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