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  • HMO & Multi-Lets

    Get approached to rent house but then sublet?

    Hi

    I was wondering if anyone on here has been approached by people or companies that give you a guaranteed rent but they then sublet the rooms out?

    Some might offer to convert to HMO but want a 3 year lease. The council are one company that approached me!  I had another guy who wanted to rent out to maximum 8 people to house contractors but I replied think that might be illegal as hmos only allow maximum five for a normal house. For temporary contractors I don't know if he can house eight people but i would have thought that is overcrowding.

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    This happens quite often. Just make sure the contract is crystal clear on who is responsible for what. Have a legal representative review the contract if you’re unsure.

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    Yep. This is what Rent to Rent is all about I'm afraid.

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    Are there any restrictions on how many people can stay in a house? If it is like airbnb or temporary contractors? That it differs from hmos in terms of fire and environmental regulations and not restricted to five people in a standard three bed house with one kitchen, one bathroom?


    I would never let it out to rent to rent as I would not know who is renting this out.


    Regards

    Soe


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    youre right to be suspicious.  these are scams.  re:

    '...hmos only allow maximum five for a normal house...'

    C4 planning use for a small hmo is 6 max persons.  you will need hmo license (and poss planning permission/ established use if in article 4 direction area).

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    Believe it or not the council have also approached me to convert to HMO lol. This is genuine!

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    You can have 6 people in an HMO before you require Sui Generis planning permission. Conversion to a 3-6 person HMO may require planning permission if your local council have issued an Article 4 directive removing the permitted development right to convert to use class C4.

    You may be limited on the number of people based on the size of the property & rooms - the Housing Act 1988 sets out the room sizes for overcrowding and The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018 sets out room sizes for licencable HMOs.

    If the house is an HMO then it will be you who is responsible for licensing and not the rent-to-renter.

    Any domestic property let out as anything other than a single family dwelling requires a fire risk assessment.


    I have been approached by several companies wanting to rent-to-rent my properties but I would never do this because of the potential legal problems e.g. no unfair contract terms protection.

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    Not something that appeals to me but for info I noticed a "Wanted : rent-to-rent" advert yesterday, where a management co is actively advertising to find 3/4 bed bed homes to convert to HMO.

    From the advert "All we ask is if we can rent the property to tenants on a room by room basis (HMO). And also where appropriate make the necessary changes to increase the number of rentable rooms available in the property."

    Link for info (nothing to do with me, but I found it interesting as it's the first of this type I've seen) https://www.gumtree.com/p/property-wanted...1325802699

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