Managing a HMO as a private landlord can be time consuming which is why it can be useful to work with a letting agent who will manage the property on your behalf.
An assured shorthold tenancy agreement (also known as an AST) allows a landlord to let a property to a tenant. The term of an assured shorthold tenancy agreement is usually 6 or 12 months and will usually convert to a rolling periodic tenancy at the end of the initial term.
A house in multiple occupation (HMO) is a property rented out by 3 or more people forming more than one household. Depending on the location of the property, a landlord might need a HMO licence. A HMO tenancy agreement is an agreement between the landlord and a tenant and will grant exclusive possession to a room in the shared house as well as access to shared facilities such as a kitchen, communal areas and a bathroom. Landlords who rent out a HMO have additonal responsibilities which need to be clearly spelled out in the assured shorthold tenancy agreement.
A letting agent is a person or company which manages a property on behalf of a landlord. A letting agent will source a tenant and often create the tenancy agreement on behalf of the landlord.
A landlord of a HMO property has additional responsibilities including maintaining the cleanliness and repair of the communal areas and facilities, ensuring the property is not overcrowded, and displaying their or their agent's contact information to the tenant. A HMO licence also imposes a minimum room floor area requirements based on the age and number of people living in the room. Because of these constraints, it is possible that a landlord might not permit a pet in a HMO tenancy if it might overcrowd the property or if there is not enough space.
Legislate's assured shorthold tenancy can be created by agents on the behalf of landlords. Agents can also sign on behalf of the landlord if they have their permission. The tenancy agreement also identifies the agent's details and responsibilities so that it is clear who tenants should contact.
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