Cribs Estates Ltd is a specialist in applying for all HMO licences and fulfilling the mandatory requirements by the local boroughs in Merton, Wandsworth, Lambeth, Kingston and other parts of London which covers most of our areas like South Wimbledon, Wimbledon, Mitcham, Morden, Sutton, Colliers Wood, Tooting, Balham, Clapham, and Kingston.
The letting market is already very high in these areas, but HMO takes Landlords one step ahead in getting good returns on their investment. We help Landlords save time and other stressful property-related tasks, compliances, certifications, and sourcing tenants and most importantly safety and security of the tenants.
Any property rented out by three or more people who are not from the same household but share common facilities like the kitchen or bathroom is classified as an HMO (House in Multiple Occupation). This type of property arrangement is subject to specific legal requirements and safety standards to ensure proper living conditions for tenants.
HMO properties are popular investment choices for landlords because they offer the potential for higher rental yields. By accommodating multiple individuals at once, landlords can generate more rental income than renting the property to a single household. This strategy maximises returns while meeting the demand for shared housing in urban areas.
Under UK law, a property is classified as an HMO (House in Multiple Occupation) if five or more people from more than one household live there, sharing facilities like the kitchen, bathroom, and common areas, without being part of the same family. Landlords can rent out their property room by room, but the number of occupants must not exceed the limit set by the local council, which depends on the facilities provided and the property’s size. Proper licensing and compliance with safety standards are needed to avoid legal complications and ensure tenant well-being.
Cribs Estates offers expert support to landlords in obtaining the accurate HMO licence, managing the entire process from application to approval with local councils in South West London. Our team also manages ongoing tenant management, ensuring compliance with all legal requirements and smooth property operations. We handle everything from safety inspections and certification to tenant coordination, giving landlords peace of mind and maximising their rental income.
If you’re a landlord looking to maximise your rental income through HMO rent in London, here are the types and licences in HMO that Cribs Estate can help you with:
Licensing Types:
Mandatory HMO Licensing:
It is required across the UK for properties rented to five or more unrelated tenants to ensure safety standards, reduce overcrowding, and protect tenants in high-risk rental situations.
Additional HMO Licensing:
This licence is implemented by some councils for smaller HMOs (three or more tenants) to address specific local issues, such as poor property conditions, and improve housing standards for smaller shared rentals.
Selective HMO Licensing:
It is enforced in specific areas regardless of occupancy to address community concerns, improve housing quality, and reduce antisocial behaviour, ensuring safer, well-managed rental properties.
Landlords often come to us inquiring about how they can convert their property to an HMO and utilise the benefits. Here’s how you can benefit by converting property to HMO and increasing your rental yields as compared to a single family or one unit.
This yield on HMO properties varies from area to area. These are the yield of the properties in south west london.
| Type | Rent Revenue | Rental Yield |
|---|---|---|
| Single-family for 4-5 bed room flat/house | £3,500/month | 6% |
| 4-5-bed HMO | £4,600/month | 12% |
| Single-family for 6 bed room flat/house | £4,500/month | 7% |
| 6-bed HMO | £6400/month | 15% |
In addition to higher revenue potential, HMO’s provide a stable rental market, especially in areas with high tenant demand. HMO properties appeal to students, young professionals, and others seeking affordable, shared accommodation options.
In managing your HMO property, we will:
We look after HMOs in multiple areas, including Colliers Wood, South Wimbledon, Wimbledon, Kingston upon Thames, Morden, Mitcham, Croydon, Tooting, Balham, and surroundings. Additionally, we can advise you on whether or not your southwest London HMO will require a licence and on the various safety regulations (fire safety, planning, etc.) you must comply with.
To meet regulatory standards, HMOs must include:
Fire Safety:
Smoke alarms on each floor, fire extinguishers, and fire escape routes. Some councils require fire doors with self-closing mechanisms.
Gas and Electrical Safety:
Valid gas and electrical safety certificates must be kept up-to-date, ensuring the property is safe for occupancy.
Room Sizes:
Minimum size requirements are 6.51 m² for a single adult and 10.22 m² for two adults.
Adequate Facilities:
Sufficient kitchen and bathroom facilities are required. Generally, one bathroom is recommended per 3-4 tenants.
Fire Doors:
All room and kitchen must have the fire doors with the self closures and with fire locks.
Fire Blankets:
Kitchen must have the fire blankets to protect the tenants.
PAT testing:
All the appliances must be tested once a year to make sure all the appliances in the property are safe to use.
EICR report:
EICR report must be valid to make sure all the electrics are safe to use to avoid any fire issues.
Fire safety furniture:
All the furniture must comply with the fire safety regulations.
Waste Management service:
A valid waste management certificate must be in place.
Lighting:
All the lighting must comply with fire rules and regulations.
In specific high-density areas, councils require planning permission for HMOs under Article 4 Direction. This affects properties with 3-6 tenants in such areas, so consult local council guidelines or contact Cribs Estates for assistance.
Licensing fees vary widely by council, typically between £200 and £500. Since requirements can differ, our team stays informed about each council’s rules and regulations, ensuring all properties meet necessary standards across London.
Failing to licence an HMO properly can lead to severe penalties, including:
Managing HMOs requires technical expertise and diplomacy. Cribs Estate has been working on this for years, so we have all the skills to attract the right tenants for our landlords.
Individuals will usually occupy the property with no prior relationships, so it is required to keep it tenanted while balancing the mix of occupants. Ultimately, the tenants have to coexist, even if only when passing in the hallway, so we go out of our way to place compatible individuals.
We continuously receive requests from professionals (particularly young professionals) who want to rent rooms in HMOs in southwest London. We specialise in keeping properties full and thus avoiding voids that are non-payments.
If you're a landlord in South Wimbledon, Wimbledon, Mitcham, Morden, Sutton, Colliers Wood, Tooting, Balham, Clapham, or Kingston, get in touch today for a free consultation and learn how Cribs Estate can increase your HMO property returns and make you more money.
The minimum size for HMO rooms is 4.64 m² for a child, 6.51 m² for one adult, and 10.22 m² for two adults. Rooms with ceiling heights below 1.5m aren't counted.
Best practice suggests one bathroom per 3 tenants, but the legal minimum is one bathroom per 4 tenants.
HMO mortgages allow multiple rooms to different tenants, and there are options for new or existing HMOs, development loans, and refurbishment loans but high street banks are reluctant to offer the mortgages on the HMO’s.
Large HMOs (7+ people) need planning permission called sui generis. Smaller HMOs (3-6 people) usually don’t unless they are in an Article 4 area, which restricts development rights.
In HMOs where rooms are individually let, landlords are responsible for paying council tax and all the utility bills on the entire property.
