A warning to landlords over new rental rules!

October 26, 2011

CIA Let Property Blog

The association of residential letting agents

The Association of residential lettings agents (ARLA) have warned landlords who rent out their properties to students or large groups not to get caught out by new rules.

Homes in multiple occupation (HMO) is where there are groups of unrelated people living in one property and sharing amenities. The ARLA has said that many local authorities want to change the rules that surround these type of homes.

Up until last year, a HMO licence had to be applied for by landlords if their property had six or more unrelated tenants with shared amenities over three levels. Article 4, as it is known, now covers any home with three to six tenants who share facilities such as bathrooms, kitchens and more.

If any landlord is found to be renting out their property as a HMO they risk getting a big fine!

The new rules are optional but areas with larger student communities or city centres will more than likely have the rules enforced, the ARLA have said.

ARLA are advising landlords to check with their local authority before changing their property to a HMO and increasing the number of people living in one house.

“HMO licensing and planning applications are not a new issue for landlords, but now there is the added complication of Article 4,” Ian Potter, Operations Manager at ARLA, said.

“There is no room for complacency – failure to comply could result in a hefty fine.

“It is therefore important for any landlord considering changing the use of a property to fully research the regulations in their area.

“For landlords with portfolios spanning more than one local authority area, this may mean different rules apply for each property. Factoring in the possible additional costs of purchasing the licence is also vital.”

We hope you found this information useful. Please remember to use CIA Insurance when you or your family and friends need motorcycle insurance, landlords insurance or commercial insurance.

Source- http://moneyfacts.co.uk

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