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  • Buy-to-Let

    Adding HMO Clause in AST

    I am thinking of inserting the following clause in an AST, as I do not have a HMO Licence and do not want to be liable for any fine if the tenants decide to sublet - or should I just have the standard no subletting without consent clause? thoughts please...

    The tenant must not allow overcrowding or allow the number of occupiers to exceed the permitted maximum (under House in Multiple Occupation rules). If, as a consequence for breaching this term, the Landlord is fined, the tenant agrees to pay the Landlord the amount of those fines and any reasonable legal costs they have incurred as a consequence

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    If I was the tenantI would take that a a green light to sublet.

    Id stick with the no subletting clause myself.

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    why would you take it as a green light to sublet?

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    Yes I've put in a term like that (in addition to no subletting without consent) - which I lifted out of the scottish model tenancy and then tweaked a bit.

    https://www.renfrewshire.gov.uk/media/490...eement.pdf

    When allowing a person to occupy the Let Property with the Tenant as that person’s only or principal home,the Tenant must ensure that the Let Property does not become an unlicensed “house in multiple occupation”(HMO)(see SECTION 2:GLOSSARY OF TERMS for definition of “house in multiple occupation”).

    The Tenant will be liable for reasonable costs and expenses, including if applicable, legal or court expenses, payable by the Landlord or his or her Agent as a result of the accommodation being, as a consequence of the Tenant’s breach, deemed an unlicensed or unregistered “house in multiple occupation”



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    DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.


    If you had a no subletting clause the tenant would be liable to you for the damages and costs associated with their breach anyway, whether you say they have to pay the fines or not. So it doesn’t make a huge amount of difference

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    David Smith
    Landlord & Tenant Solicitor
    Anthony Gold Solicitors

    Find me on LinkedIn: uk.linkedin.com/in/dsnsmith

    All opinions are my own and do not reflect those of my firm. No comment made should be taken as legal advice and you should consult a solicitor or other legal professional for advice on your specific situation.