Houses in Multiple Occupation

Houses in Multiple Occupation (HMOs) in Scotland: Landlord Responsibilities

What is an HMO in Scotland?

A House in Multiple Occupation (HMO) is a property rented by three or more unrelated individuals who share facilities such as a kitchen or bathroom. HMOs are common in student accommodations, shared flats, and co-living spaces. Due to the increased risks associated with multiple occupants, landlords must meet stricter legal and safety requirements.

Why Do HMOs Require a License?

HMOs require a specific license under the Housing (Scotland) Act 2006 to ensure tenants’ safety and well-being. Without a license, landlords face severe penalties, including fines of up to £50,000 and potential bans on renting property.

How to Apply for an HMO License

Landlords must follow these steps to obtain an HMO license:

  1. Apply Through the Local Council – Each local authority processes HMO applications.
  2. Meet Safety Standards – Properties must comply with fire safety, electrical checks, and proper sanitation.
  3. Pass the Fit and Proper Person Test – Landlords must not have relevant criminal convictions or a history of poor property management.
  4. Allow Property Inspections – The council may inspect the property to ensure compliance with HMO standards.
  5. Pay Licensing Fees – Costs vary depending on the local authority and property size.

Key Responsibilities of HMO Landlords

Once licensed, HMO landlords must:

  • Maintain property safety (fire exits, extinguishers, smoke detectors, and emergency lighting).
  • Ensure all electrical and gas appliances are regularly tested.
  • Keep communal areas in good condition.
  • Prevent overcrowding by adhering to occupancy limits set by the council.
  • Handle repairs promptly to meet the Repairing Standard.

How Should Landlords Charge Rent for an HMO?

Landlords must set rent fairly and comply with legal requirements:

  • Use a Private Residential Tenancy (PRT) Agreement – This ensures clear terms for rent, deposits, and tenant rights.
  • Provide Rent Payment Details – Tenants must receive a written breakdown of rental costs.
  • Follow Rent Increase Rules – Rent can only be increased once per year with at least three months’ notice.
  • Secure Deposits in an Approved Scheme – Deposits must be registered with SafeDeposits Scotland, Letting Protection Service Scotland, or MyDeposits Scotland.

Penalties for Non-Compliance

Failing to meet HMO licensing requirements can result in:

  • Fines up to £50,000.
  • Rent Repayment Orders, forcing landlords to return rent paid during an unlicensed period.
  • Criminal charges for severe breaches of safety and legal obligations.

Useful Links for HMO Landlords

  • Scottish Government HMO Guidance: HMO Licensing
  • Local Council HMO Licensing Pages: Check your local council’s website for specific requirements.
  • Scottish Fire and Rescue Service Safety Advice: Fire Safety in Rented Properties

Final Thoughts

HMO landlords in Scotland have additional legal and safety responsibilities to protect their tenants. Understanding the licensing process, adhering to safety regulations, and charging rent correctly are crucial for compliance. By following the law, landlords can provide high-quality accommodation while avoiding penalties.

For more details, visit your local council’s HMO licensing page or refer to the Scottish Government’s official guidance.