Author: Sam Gaskin

Managing tenants in a House in Multiple Occupation (HMO) can be a challenging task, especially when anti-social behaviour disrupts the harmony of the household. Evicting HMO tenants is often a last resort, but sometimes it becomes the only solution to protect the property and other tenants. This case study explores a real eviction, providing valuable insights for landlords facing similar issues.

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A Problematic Tenant: The Background

The tenant in this case appeared ideal during the initial vetting process. They had a stable full-time job, a clean rental history, and passed all checks, including credit reports and references. Unfortunately, a few months after moving in, their housemates began to complain.

Key Issues:

• Hygiene Concerns: Foul odours and flies emanated from the tenant’s room.
• Fire Risk. During the servicing of the fire alarm a pile of fast food packaging in the tenant’s room was identified as a fire risk, prompting the property manager to clear the room and remove 36 bags of rubbish
• Unresolved Problems: Despite multiple verbal and written warnings, the tenant failed to address the issues.

After months of failed interventions, the landlord had no choice but to begin the formal process of evicting the tenant. The tenant then decided to stop paying rent.

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The Eviction Process: Step-by-Step

Evicting HMO tenants requires adherence to strict legal protocols. Here’s how this case unfolded.

Step 1: Early Warnings and Section 21 Notice

• 3 months into tenancy: Complaints began, prompting the first warning.
• 4 months into tenancy: Multiple written notices were issued, with no lasting resolution.
• 5 months into tenancy: A Section 21 (S21) notice was served, giving the tenant two months to vacate.

Step 2: Escalation to Court Action

• Day 1: Accelerated possession documents were posted to the court.
• Day 19: A call from the court received to pay the £355 court fee was paid and the claim was issued. (Delay occurred due to the landlord not having a cheque.) The tenant was given 14 days to file a defence.
• Day 39: Following a lack of defence, a request for a Possession Order slip was posted to the court.
• Day 45: Letter received from the court stating the slip was incorrect, as an option had not been selected.
• Day 46: A corrected slip was posted, indicating a request for possession and costs.
• Day 84: A letter from the court advised that the claimant was not entitled to use the accelerated possession procedure. A court hearing was scheduled for Day 97.
• Day 88: Solicitor instructed to attend the court hearing.
• Day 97: The court hearing was held. The judge awarded possession and costs, with the tenant ordered to vacate by Day 111.
• Day 114: Request for Warrant of Possession emailed to the court.
• Day 137: A callback from the court was received, and the £143 bailiff fee was paid. The warrant was issued.
• Day 153: Notice of the bailiff’s appointment was issued for Day 201.
• Day 166: Confirmation slip posted to the court.
• Day 201: The property manager attended with a locksmith to change the locks. The bailiff arrived but couldn’t proceed due to an error in the paperwork (missing room number). Despite this, the tenant agreed to move out voluntarily and signed a deed of surrender. The tenant vacated the property.
• Day 215: The court issued another notice for a follow-up appointment 2 months later, although this was unnecessary as the tenant had already vacated.

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Timeline Summary of Evicting HMO Tenants

• 6.5 Months to Gain Possession: From the initial Section 21 notice to gaining possession
• 3 Months for Bailiff Enforcement: From the Warrant of Possession request to the bailiff’s appointment

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The Costs of Evicting HMO Tenants

Evicting HMO tenants can be financially draining. Here’s the breakdown for this case:

• Rent Arrears: £4,214
• Costs: £2,828
• Total Financial Loss: £7,042

This underscores the importance of avoiding delays and procedural errors during the eviction process.

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Lessons Learned

This case highlights key lessons for landlords managing HMO properties:

1. PCOL vs Accelerated Possession

The accelerated possession procedure is paper-based and onerous, which led to several delays during the process, not to mention printing and posting the 267-page claim. A three-week delay occurred because the landlord couldn’t immediately make the required payment as it required a cheque. Later, a one-week delay was caused when the possession slip was rejected due to a box not being crossed out. Using the Possession Claim Online (PCOL) system could significantly reduce delays although it requires a court hearing. It allows landlords to make payments easily with a debit card and simplifies the process by enabling online submissions and corrections.

2. Double-Check AST Details

In this case, the Assured Shorthold Tenancy (AST) mistakenly listed the Agent’s name instead of the Landlord’s name due to a software error. This oversight led to the court determining that the claimant (the Landlord) did not appear to have a legal interest in the tenancy, triggering a court hearing. To avoid similar issues, add a step to your process to verify that the Landlord’s name is correctly shown on all ASTs. If any ASTs are found to have errors, reissue them promptly to ensure compliance and prevent complications.

3. Call The Bailiff On the Morning of the Eviction

A court administrative error resulted in the room number being omitted from the warrant of possession resulting in the bailiff being unable to carry out the eviction and a potential further 2-month delay. On the morning of the possession, contact the bailiffs to confirm that the room number is correctly shown on the warrant and get them to add it if not.

4. Act Promptly on Anti-Social Behaviour

A delay of five months occurred between the issue being logged and the Section 21 notice being served. While the intention was to give the tenant ample opportunity to address their behaviour, issuing the Section 21 notice earlier would have provided a necessary safeguard while still allowing time to work collaboratively with the tenant. Introducing a clear trigger for issuing a Section 21 notice after a set period of persistent anti-social behaviour—adjusted for severity—can help balance fairness with the need to protect the property and other tenants.

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Communication as a Key Strategy

Despite the many challenges, the tenant eventually agreed to move out voluntarily. Open communication and negotiation played a crucial role in resolving the situation without further delays. This demonstrates the value of maintaining professional yet firm relationships with tenants, even during disputes.

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The Importance of Proactive Management to avoid Evicting HMO tenants

Evicting HMO tenants can be a lengthy and costly process, but it also offers valuable lessons in proactive property management. By implementing robust procedures, maintaining clear communication, and addressing issues early, landlords can safeguard their investments and create a harmonious environment for all tenants.

Confidence Property offers professional support to landlords, helping to prevent and manage anti-social behaviour in HMOs through proactive tenant management and regular property inspections. If issues do arise, Confidence Property can guide landlords through the legal process and connect them with experienced housing solicitors to ensure the matter is resolved efficiently and in compliance with all legal requirements.

The Salford selective licensing scheme in Langworthy, Weaste, and Seedley will officially end on 20 November 2024, impacting landlords with properties in these specific areas. This change requires HMO landlords, particularly those managing 3–4 bed properties, to take action to remain compliant under new licensing requirements. Without renewal of selective licensing in these designated neighbourhoods, small Houses in Multiple Occupation (HMOs) previously covered must now apply for an additional HMO licence to continue operating legally.

For Salford landlords, understanding and preparing for this transition will ensure compliance and protect against potential penalties. Here’s what this change means and how landlords can prepare.

Salford Selective Licensing Expiry and Its Impact on Landlords

Selective licensing was implemented to improve property standards, address tenant safety, and increase landlord accountability. By requiring a licence, Salford City Council could ensure that rental properties met baseline standards, particularly in areas needing improvement. However, as the selective licensing scheme in Langworthy, Weaste, and Seedley is set to expire without renewal, landlords of small HMOs (typically properties rented to three or four unrelated tenants) must now meet the requirements of an additional HMO licence to remain compliant.

This change impacts all small HMOs in these areas, as the council mandates that landlords comply with enhanced safety standards and management practices to maintain the quality of housing. Missing this licensing step could lead to enforcement actions, fines, or even an inability to rent the property legally.

Key Actions for 3–4 Bed HMO Landlords in Salford

If you’re a landlord with a small HMO in Langworthy, Weaste, or Seedley, here are the key steps to take now to prepare for the end of Salford selective licensing:

1. Apply for an Additional HMO Licence Before Expiry of Salford Selective Licensing

The Salford City Council requires landlords to apply for an additional HMO licence in place of the expiring selective licence. To ensure your property remains compliant, start the application process before 20 November 2024. This process involves providing detailed information about the property, its management, and its safety protocols, all of which help the council assess whether the property meets local standards.

2. Prepare for Council Inspections

Once you apply for an additional licence, the council may schedule a property inspection to confirm that it meets health, safety, and maintenance standards. To avoid delays or possible rejection, ensure that all aspects of the property, including fire alarms, electrical systems, and structural safety, are compliant with current HMO regulations.

3. Ensure Your Property Meets Updated Safety and Maintenance Standards

Additional licensing requirements often include stringent safety standards, from fire safety equipment to gas and electrical checks. Confirm that your HMO has well-maintained fire doors, working smoke alarms, and properly certified electrical and gas installations. These standards, which are critical for tenant safety, also help to avoid costly fines or penalties.

Compliance Services Available for Salford HMO Landlords

The end of Salford selective licensing brings new requirements that can feel complex, especially if managing multiple properties. Confidence Property is here to assist HMO landlords through this process with services that make the transition seamless:

• Application Assistance: We handle the additional HMO licence application on your behalf, ensuring it’s completed correctly and submitted on time.
• Inspection Representation: Our experienced team will attend council inspections on your behalf, addressing council questions and ensuring the property is fully prepared.

With our services, you can avoid the stress of the application process and stay compliant with local council regulations.

Benefits of Licensing Compliance for Salford HMO Landlords

Transitioning to the additional HMO licence brings numerous advantages to landlords, from legal protection to increased tenant satisfaction. Here’s why licensing compliance is beneficial:

• Reduced risk of fines and penalties: Complying with licensing requirements eliminates the risk of financial penalties due to non-compliance.
• Enhanced tenant satisfaction and safety: A licensed property with safety standards in place leads to a better tenant experience, reducing turnover and attracting reliable tenants.
• Improved property value: Properties that adhere to licensing standards often have a higher perceived value, which can positively impact market value and rental rates.

Preparing for Long-Term Compliance in Salford

Remaining up-to-date with licensing changes in Salford will benefit both landlords and tenants, ensuring that properties meet standards for safety and quality. As the selective licensing scheme concludes, landlords should start the transition to an additional HMO licence as early as possible. This not only ensures continuous compliance but also positions your property as a safe and reputable rental within the Salford market.

For more information on the council’s additional licensing requirements, you can visit Salford City Council’s HMO licensing page.

Confidence Property is ready to support you through each step of this transition, so you can focus on the quality of your property while we handle the compliance.

Whether you’re an experienced landlord or new to HMO Manchester Investments, Manchester offers abundant opportunities for high-yield property investments. The city’s diverse tenant base, demand from young professionals and students, and a thriving local economy make it an excellent choice for landlords. However, understanding the best areas to invest in is essential for maximising returns.

We’ve analysed the latest data from October 2024, including SpareRoom’s rental figures and Zoopla’s average sold prices over the last year for three-bedroom terraces—a common property type for HMO conversions. Using a five-bedroom HMO as an example, we’ve calculated gross yields, both before and after an estimated £100,000 refurbishment cost. Actual costs may vary, so make sure to get your own quotes.

Area	Average Monthly Room Rent (Q3 2024)	Average Sold Price (3-bed terrace)	Gross Yield (Excluding Refurb Cost)	Gross Yield (Including Refurb Cost)
Wigan	£553	£120,407	28%	15%
Oldham	£604	£135,714	27%	15%
Rochdale	£590	£136,986	26%	15%
Bolton	£561	£138,699	24%	14%
Bury	£584	£160,901	22%	13%
Salford	£699	£211,621	20%	13%
Manchester	£707	£221,474	19%	13%
Stockport	£643	£221,351	17%	12%
Cheadle	£680	£276,291	15%	11%
Sale	£647	£328,552	12%	9%

Key Areas for HMO Manchester Investment

Salford

Salford offers an ideal balance for HMO landlords, with its proximity to MediaCityUK attracting young professionals from media and tech industries. The area’s regeneration and transport links ensure steady tenant demand, and affordable property prices compared to central Manchester add to its appeal. Salford is great for investors seeking strong rental yields and long-term growth potential.

Ashton-under-Lyne

Ashton-under-Lyne provides landlords with affordability and strong tenant demand, driven by its transport connections to Manchester. This suburban area combines convenience and charm, appealing to both students and professionals. Spacious properties are more affordable here, making them ideal for HMO conversions, with ongoing developments supporting growth.

Bury

Bury is popular among tenants seeking suburban living and an easy commute. The area attracts professionals and families with its green spaces and shopping facilities. For landlords, Bury offers stable long-term returns with affordable property prices and high demand from those who prefer a quieter lifestyle with quick city access.

Failsworth

Failsworth is a great option for landlords seeking affordability and strong rental returns. Located 20 minutes from Manchester, this area appeals to young professionals and students who want a more budget-friendly alternative to central Manchester. Failsworth’s local amenities and transport links ensure high demand, providing solid returns for both new and experienced landlords.

Bolton

Bolton provides a cost-effective entry point for HMO investors, offering high yields and strong demand. Although it lacks direct Metrolink access, Bolton’s transport links by bus and train keep it well-connected to Manchester. The area is popular with professionals and families, ensuring rental demand remains steady, making Bolton ideal for long-term investments.

Rusholme

Rusholme is in constant demand due to its proximity to the University of Manchester and major hospitals, attracting both students and medical professionals. Due to Manchester City Council’s restrictions on new HMO conversions, investing here often involves purchasing properties with existing planning permission, which come at a premium but offer higher rental potential. Adding value through refurbishment or adding extra rooms can help offset these costs.

Planning and Licensing Considerations for HMO Manchester

Greater Manchester has strict planning and licensing regulations for HMOs, especially in areas like Manchester City Council, Salford and Trafford, which fall under Article 4 directions. This means converting properties to HMOs requires planning permission, making it more challenging for new applications. In these areas, it’s often best to purchase properties with existing HMO licences or a Certificate of Lawful Development. For more details, check out our article HMO licensing and planning.

Areas outside of Article 4 zones, such as Failsworth, Bolton, and Ashton-under-Lyne, offer more flexibility, with fewer regulatory barriers for HMO conversions. However, all HMOs must comply with safety and living standards, including fire safety measures and adequate facilities for tenants. Be sure to check the specific regulations for your area before investing.

The Role of Transport and Parking in HMO Manchester Investments

Transport links play a significant role in tenant demand, especially among young professionals and students. Properties near Metrolink stops or train stations are highly sought after. Areas like Salford, Failsworth, and Stockport benefit from excellent public transport, ensuring easy commutes to the city centre.

While transport links are important, parking can also be a bonus for attracting tenants who own cars. In our experience, most tenants don’t drive, but offering parking can still broaden your tenant pool. When selecting a property, try and avoid areas with double yellow lines outside, as this can limit parking and indicate a busy main road, which may deter tenants seeking quieter living environments.

Conclusion

Manchester’s HMO market provides excellent opportunities for landlords, with a range of areas offering strong yields and tenant demand. Whether you’re targeting affordable areas like Failsworth and Bolton, or more central spots like Salford and Rusholme, there are options to suit all types of investors. Keep in mind the local planning and licensing restrictions, and always consider transport links and parking, as these factors can significantly impact tenant demand.

If you’re thinking of buying a property to convert into an HMO, we’re here to help. For personalised advice about the best areas to invest in, click here to book a free HMO Q&A call. Let us guide you in making the right choice for your investment.

When converting or managing an HMO (House in Multiple Occupation), understanding the requirements for licensing and planning permission is crucial. Both are legal obligations, but they serve different purposes. Knowing which permissions apply to your property ensures compliance with regulations and avoids unnecessary penalties.

What is an HMO?

An HMO refers to any property that houses three or more unrelated tenants who share facilities such as kitchens or bathrooms. This arrangement is often used for student accommodation or shared housing for young professionals. While HMOs can offer higher returns than traditional rentals, they also come with increased regulatory scrutiny to ensure tenant safety and proper property management.

HMO Licensing Explained

Licensing is a legal requirement that focuses on the health, safety, and management standards of HMOs. Local councils use licensing schemes to ensure that landlords meet minimum standards for living conditions and tenant welfare.

1. Mandatory HMO Licensing

If your property is occupied by five or more unrelated tenants, you are legally required to obtain a mandatory HMO licence. This type of licence ensures that larger properties are managed correctly and that they meet essential safety and space standards, including fire precautions and adequate living conditions.

2. Additional HMO Licensing

In some areas, councils extend licensing to smaller HMOs through additional licensing schemes. This applies to properties with three to four unrelated tenants in areas where councils aim to improve housing conditions in the private rental sector. If your property is in an area with additional licensing, even small HMOs need a licence to ensure they meet safety standards.

3. Selective Licensing

Selective licensing is broader and applies to all rental properties, including single-family homes and smaller HMOs. This is typically introduced in areas with problematic housing conditions or high levels of anti-social behaviour. Under this scheme, landlords need a licence to ensure their properties are managed according to local standards. A selective licence is usually not required for a property that requires an HMO licence.

Planning Permission for HMOs

Planning permission deals with how the property is used and the impact it has on the surrounding area. While licensing ensures tenant safety, planning permission is concerned with the broader implications of an HMO on the local neighbourhood.

Small HMOs and Permitted Development Rights

If your property is being converted to a small HMO (3-6 occupants), you may not need full planning permission. Under permitted development rights, you can change the use of the property from a family home (C3 Use Class) to a small HMO (C4 Use Class) without requiring planning approval. However, it’s important to check local restrictions.

Large HMOs (Sui Generis)

If your HMO will house more than six tenants, it falls under the Sui Generis Use Class, which requires full planning permission. This is because larger HMOs are considered to have a greater impact on the local area in terms of noise, parking, and property management. Councils will assess these factors when deciding whether to grant planning permission.

Article 4 Directions

Article 4 Directions are used by local councils to limit permitted development rights. This means that in certain areas, you will need planning permission to convert a property into an HMO, even if it would usually fall under permitted development rights. Trafford is one such area where an Article 4 Direction has been introduced to manage the number of HMOs. Here, even small HMOs require planning permission to ensure neighbourhoods maintain a balance between family homes and shared accommodation.

In Salford, Article 4 only applies to specific areas, meaning that in some regions, small HMOs can still be established under permitted development rights without planning permission. It’s essential to check with the local council to determine whether your property is affected by an Article 4 Direction.

Conservation Areas and HMO Restrictions

If your property is in a conservation area, additional restrictions may apply when converting it into an HMO. Conservation areas are designated to protect the architectural or historical character of a neighbourhood, and councils may require planning permission to make changes, including converting a property into an HMO. The goal is to prevent changes that could negatively impact the appearance and character of these areas.

Greater Manchester HMO Licencing & Planning Requirements

Where available, click on the links below to go to the relevant council website

Borough	Article 4	Additional HMO Licensing
Bolton	No	No
Bury	No	No
Manchester	Yes*	No
Oldham	No	No
Rochdale	No	No
Salford	Partial	Yes
Stockport	Partial	No
Tameside	No	No
Trafford	Yes	No
Wigan	Partial	No

*MCC has a policy of refusing any planning applications for HMO conversions
Disclaimer: The information in this table is correct as of October 2024 – please check with your local council for current licensing and planning regulations.

The Importance of Compliance

Understanding the requirements for HMO licensing and planning permission is crucial, as non-compliance can lead to significant penalties. Councils have the power to issue fines of up to £30,000 per offence for unlicensed HMOs, or in some cases, take legal action resulting in unlimited fines. In severe situations, landlords may face criminal prosecution, and tenants can apply for Rent Repayment Orders, reclaiming up to 12 months’ rent.

Additionally, failing to obtain planning permission where required could result in enforcement action. Councils may issue enforcement notices requiring the property to revert to its original use, which can be costly. This is especially risky in areas where Article 4 Directions apply, as many landlords mistakenly assume they can operate under permitted development rights.

What Should Landlords Do?

To avoid penalties and legal issues, landlords must ensure they are fully compliant with both licensing and planning regulations. Here are some steps to take:

1. Check local council requirements: Confirm whether your area has additional or selective licensing schemes, and whether your property is affected by an Article 4 Direction.
2. Apply for an HMO licence: If your property meets the criteria for licensing, apply as early as possible to avoid fines.
3. Seek planning permission if necessary: Even if you have an HMO licence, you may still need planning permission, particularly in areas with Article 4 restrictions or conservation areas. We would always recommend engaging with a Planning Consultant or Architect.
4. Maintain compliance: Regularly check for changes in local regulations and ensure your property continues to meet safety and management standards.

For landlords looking to convert properties into HMOs or ensure they are meeting current regulations, working with experts like Confidence Property can help navigate the complexities of licensing and planning.

In shared accommodation, not all HMO anti-social behaviour (ASB) is severe enough to warrant legal action, but that doesn’t mean it can be ignored. In HMOs (Houses in Multiple Occupation), everyday nuisances such as failing to clean up, excessive noise, or having guests overstaying their welcome can create tension among housemates. These lower-level issues might not call for eviction, but they can result in complaints, stress, and even tenants moving out if not properly managed.

Preventing HMO Anti-Social Behaviour: Setting House Rules

The best way to manage minor anti-social behaviour in an HMO is through prevention. Establishing clear house rules from the start ensures everyone knows what’s expected of them, helping to avoid disputes. These rules should be clearly communicated, starting with your advertisements, emphasised during viewings, included in the tenancy agreement, discussed during the check-in process, and posted on a noticeboard in shared spaces. When housemates understand the boundaries from the beginning, there’s less room for misunderstandings later.

House rules should cover common issues such as:

• Cleaning up after yourself: Whether it’s washing dishes or tidying up communal areas, encourage housemates to be considerate
• Recycling and rubbish: Ensure everyone knows when it’s their turn to take out the bins. Poor waste management can lead to frustration and unclean living conditions
• Noise control: Set reasonable limits, especially after 10 p.m., to ensure everyone enjoys a peaceful environment
• Overnight guests: Define how often guests can stay to avoid unapproved housemates staying longer than allowed
• Respecting personal space: Discourage tenants from leaving belongings in communal areas, which can cause clutter, disputes and fire safety hazards

Investigating Complaints and Breaches

Despite clear house rules, breaches and complaints will inevitably arise. When they do, it’s crucial to handle them promptly and fairly. Start by investigating the issue to determine who is responsible. Speak to all housemates, either individually or as a group, to get a full picture. This approach not only helps resolve the issue but promotes transparency and trust among tenants.

If necessary, host a house meeting to allow everyone to voice their concerns. Open communication often resolves these issues before they escalate. Encourage tenants to talk openly and sort out minor problems before they grow into serious cases of HMO anti-social behaviour.

Managing Repeat Offenders

If a tenant continues to violate house rules despite warnings, you may need to take further action. Keep a detailed log of the breaches, and where possible, gather evidence such as photos or written complaints from other tenants. Documentation will be crucial if the situation progresses to formal warnings or eviction.

Start by issuing a written warning letter outlining the repeated breaches of the tenancy agreement or house rules. Have a face-to-face conversation to ensure the tenant understands the impact of their behaviour. Often, making the tenant aware of the consequences is enough to resolve the issue.

When to Serve Notice for HMO Anti-Social Behaviour

If the tenant’s behaviour continues to breach house rules without improvement, you may need to serve notice. Currently, many landlords use a Section 21 Notice, which allows possession without providing a reason. This makes it a straightforward option when dealing with repeated lower-level HMO anti-social behaviour. However, this process may change with the proposed Renters Reform Bill, which aims to abolish Section 21 and strengthen the grounds for eviction under Section 8.

As a landlord, this means you’ll need to rely more on proving breaches under Ground 12 (violating the tenancy agreement) or Ground 14 (causing a nuisance). The challenge with Section 8 is that the grounds are discretionary, meaning a judge will decide whether the tenant’s behaviour justifies eviction. Given these potential legal changes, documenting every breach is crucial, especially if tenant behaviour is impacting others.

Distinguishing Between Everyday Issues and Legal HMO Anti-Social Behaviour

It’s essential to distinguish between minor breaches of house rules and more serious cases of anti-social behaviour that could require legal intervention. Everyday issues like failing to clean up or having noisy guests might not meet the legal threshold for ASB under the Housing Act. These are lower-level problems that are usually resolved through communication, house meetings, and warnings.

However, some behaviours may escalate to the point where legal action becomes necessary. Serious HMO anti-social behaviour—such as harassment, vandalism, or drug use—could fall under Ground 7A of Section 8 for mandatory eviction. In these situations, gathering solid evidence and following the correct legal procedures is vital, though this should only be a last resort after attempting other solutions.

Encouraging a Harmonious Living Environment

Managing lower-level HMO anti-social behaviour doesn’t need to be a hostile process. By encouraging open communication, setting clear expectations, and addressing complaints quickly, you can foster a harmonious living environment. Here are some tips to help:

• Host Regular House Meetings: Give tenants an opportunity to discuss any issues openly. These meetings can prevent minor disputes from becoming serious problems.
• Make House Rules Visible: Keep a copy of the house rules posted in communal areas to remind everyone of their responsibilities.
• Promote Respect: Encourage tenants to treat each other with kindness and consideration, which can go a long way in creating a peaceful home.

The Role of a Specialist HMO Letting Agent

Handling the day-to-day management of HMO anti-social behaviour can be overwhelming, especially when tenants are non-cooperative or the issues persist. This is where a specialist HMO letting agent like Confidence Property can make all the difference. With extensive experience in dealing with both lower-level and more serious tenant disputes, we take care of these problems for you, ensuring your tenants follow the house rules and any complaints are handled quickly.

By partnering with Confidence Property, you’ll have peace of mind knowing your HMO is in safe hands. We manage the entire process—from setting and enforcing house rules to dealing with breaches and serving notices if necessary. With upcoming changes to legislation affecting landlords, now is the time to trust experienced professionals to help keep your property running smoothly.

The Renters’ Rights Bill, which had its first reading in the House of Commons in September 2024, introduces significant changes to the UK’s private rented sector. For landlords, especially those managing HMOs in Manchester, understanding these updates is essential. The Bill, driven by Labour’s faster and more extensive reform agenda, includes critical measures that differ from previous Conservative proposals. This article breaks down the key changes and what they mean for landlords.

Key New Changes in Labour’s Renters’ Rights Bill

1. Immediate abolition of Section 21 for both new and existing tenancies
2. Arrears threshold increase from 2 to 3 months
3. Expansion of Awaab’s Law to the private rented sector
4. Ban on bidding wars
5. Further restrictions on rent increases

1. Immediate Abolition of Section 21 Evictions

One of the most notable changes in the Renters’ Rights Bill is the immediate abolition of Section 21, which allows landlords to evict tenants without providing a reason. Under the new law, landlords will need a legal reason, such as selling the property or tenant misconduct, to end a tenancy. This contrasts with the Conservative plan, which aimed to abolish Section 21 only after court reforms.

For HMO landlords in Manchester, this change may require a more thorough tenant screening process, as tenant security is increased. Concerns remain about whether the court system will be able to handle the anticipated rise in possession claims.

2. Arrears Threshold Increase From 2 to 3 Months

A significant update is the increase in the rent arrears eviction threshold from 2 to 3 months, meaning landlords will need to wait longer before serving a possession notice. Additionally, the notice period will extend from 2 to 4 weeks. In practice, these changes could add up to 1.5 months to an already lengthy possession process, which currently averages between 6 and 12 months. However, landlords retain the ability to pursue eviction under discretionary grounds if rent is consistently late.

3. New Safety Standards and Awaab’s Law

Labour’s Renters’ Rights Bill expands Awaab’s Law, originally introduced to protect social housing tenants, to the private rental sector. Landlords must now address serious hazards, such as damp and mould, within a specified timeframe. This law ensures that rental properties meet basic safety and habitability standards, with penalties for non-compliance.

HMO landlords managing older properties in Manchester should ensure regular inspections and maintenance to meet these requirements, avoiding potential legal issues and fines.

4. Ban on Bidding Wars

The Renters’ Rights Bill bans rental bidding wars, a practice where prospective tenants offer above the asking price to secure a property. The Bill mandates that landlords and letting agents publish a fixed asking rent and prohibits offers above this amount.

5. Restrictions on Rent Increases

The Renters’ Rights Bill introduces tighter controls on rent increases, banning in-tenancy rent review clauses. Landlords are limited to raising rents once per year, in line with the market rate, and tenants can challenge excessive increases through the First-Tier Tribunal.

This will likely impact rent-setting strategies for HMO landlords, who will need to ensure rent increases are reasonable and justifiable. Tenants now have more power to contest unfair rent hikes, adding another layer of complexity to managing rental properties.

What’s Next for the Renters’ Rights Bill?

The second reading will take place on 12th September, and then the remainder of the parliamentary process in both the House of Commons and the House of Lords, and will follow over the coming months. There is cross party support for reform in the rented sector, and as the Bill appears to largely mirror the previous Renters’ (Reform) Bill, it is almost certain that the Bill will eventually pass and become law before the summer of 2025.

For HMO landlords in Manchester, the Bill’s changes will require a shift in how properties are managed, especially with the abolition of Section 21 and the introduction of stricter rent controls and safety standards.

Managing these new regulations can be complex, but at Confidence Property we are here to help. Our expertise in HMO property management ensures that your properties stay compliant with all legal standards while maximising profitability.

When it comes to marketing your HMO property, first impressions are everything. As a landlord, you want to showcase your property in the best possible light to attract potential tenants quickly and efficiently. One of the most effective ways to achieve this is by investing in HMO professional photos. While it may be tempting to save money and take photos yourself, this can be a false economy. Here’s why professional photography is crucial for your HMO property and how it can impact your bottom line.

The False Economy of Skipping HMO Professional Photos

Many landlords believe that taking photos with their phone is sufficient, especially when they are mindful of their budget. However, this approach often leads to longer void periods and missed rental income. Properties marketed with high-quality photos attract more attention, which can significantly reduce the time your property remains vacant.

Cost of HMO Professional Photos vs. Cost of Voids

Let’s break down the costs. A professional photoshoot for your HMO property may cost around £300-£500. This expense is minor compared to the potential cost of void periods. For instance, if your HMO has an average rent of £600 per room and remains empty for an additional month due to poor-quality photos, you could lose £600 per room. If you have a five-room HMO, that’s a potential loss of £3,000 in just one month.

Moreover, the cost of professional photos is insignificant compared to the overall refurbishment costs. After spending thousands on refurbishing your property, skimping on photography is like baking a beautiful cake and then serving it without icing. The photos are what will draw tenants in and showcase the quality of your refurbishment.

Why HMO Professional Photos Matter

Professional photographers have the skills, equipment, and experience to capture your property in the best possible way. They know how to use lighting, angles, and staging to highlight the key features of your property. Here are a few reasons why professional photos make a significant difference:

Enhanced Visual Appeal

Professional photos make your property look more inviting and spacious. Photographers use wide-angle lenses to capture the full scope of a room, ensuring that potential tenants get a clear and attractive view of the space.

Increased Online Engagement

Listings on platforms like SpareRoom with high-quality photos receive more views and enquiries. Properties with professional photos stand out more in online listings, leading to increased engagement from potential tenants. This increased engagement can lead to quicker tenancies and reduced void periods.

Competitive Advantage

In a competitive rental market, having professional photos can set your property apart from others. Potential tenants are more likely to be attracted to listings with clear, high-quality images. This competitive edge can make all the difference in securing tenants quickly.

Staging Your Property for Success

In addition to professional photography, staging your property can further enhance its appeal. Staging involves arranging furniture and decor to create a welcoming and aesthetically pleasing environment. Here’s why staging is essential:

Showcasing the Property’s Potential

Staging helps tenants envision themselves living in the property. It highlights the functionality of each room and can make small spaces appear larger and more usable. When tenants see a well-staged property, they are more likely to feel a connection and make an enquiry.

Highlighting Key Features

Staging allows you to draw attention to the best features of your property. Whether it’s a spacious living area, a modern kitchen, or a cosy bedroom, staging can enhance these features and make them stand out in photos.

Creating a Positive First Impression with HMO Professional Photos

A well-staged property looks tidy, organised, and well-maintained. This positive first impression can make potential tenants more confident in the quality of the property and the landlord.

The Unique Opportunity When the Property is Empty

The ideal time to take professional photos and stage your property is when it is empty and newly refurbished. At this stage, the property is at its best—clean, uncluttered, and ready to impress. Once the property is tenanted, it will never look the same again. Tenants’ personal belongings and varying levels of tidiness can detract from the property’s appeal in photos.

By capturing high-quality images during this unique window, you ensure that you have the best possible marketing materials to use for future listings. These photos can be reused whenever the property becomes vacant, making them a long-term investment in your marketing strategy.

Confidence Property’s Approach

At Confidence Property, we understand the importance of presenting your HMO property in the best possible light. We recommend all our landlords invest in professional photography and staging to maximise their property’s potential. Our experience has shown that this approach leads to quicker tenancies and happier tenants. By partnering with us, you can benefit from our expertise and commitment to showcasing your property effectively.

Maximise Your Property’s Potential

Investing in HMO professional photos and staging for your HMO property is not just an added expense; it is a strategic investment in reducing void periods and maximising rental income. The cost of professional photos is minimal compared to the potential losses from extended vacancies. High-quality images attract more enquiries, create a competitive advantage, and present your property in the best possible light.

Don’t fall into the trap of false economy. Ensure your property stands out in a crowded market by investing in professional photography and staging. This small investment can make a significant difference in your property’s success.

At Confidence Property, we offer a bespoke professional photo and staging service to help you maximise your property’s potential. To find out more, click here for a callback.

As the deadline for Salford’s new Article 4 Direction approaches, investors planning to convert a property to an HMO (House in Multiple Occupation) in Salford (Swinton, Worsley, Walkden, and Little Hulton) need to be fully prepared. Ensuring your development complies with the new regulations before the 17 November 2024 deadline is crucial to avoid future planning permission issues.

Understanding the New Article 4 Direction

Salford City Council first implemented an Article 4 Direction in November 2018, requiring planning permission for converting dwellinghouses into small HMOs in specific areas. This policy initially covered all Central Salford wards and parts of Barton and Eccles. However, an additional Article 4 Direction, confirmed on 9 July 2024, extends these requirements to new areas, effective from 17 November 2024.

Key Areas Affected by the 2024 Article 4 Direction

The new Article 4 Direction will encompass:

• Little Hulton
• Swinton and Wardley
• Walkden North and Walkden South
• Worsley and Westwood Park
• Parts of Barton and Winton, Pendlebury and Clifton, and Swinton Park not covered by the 2018 direction.

From 17 November 2024, the only areas in Salford exempt from requiring planning permission for converting a dwellinghouse into a small HMO will be Boothstown and Ellenbrook, Cadishead and Lower Irlam, and Higher Irlam and Peel Green.

Proving Your Development Commenced Before 17 November

Investors must provide evidence that their development began before 17 November to avoid needing planning permission under the new Article 4 Direction. The planning department has outlined several acceptable forms of evidence to demonstrate this:

Types of Acceptable Evidence for your HMO in Salford

1. Dated Photos: Photographic evidence showing the progress of works can be compelling. Ensure these photos are clearly dated and show significant milestones in the conversion process.
2. Bills and Invoices: Keep records of any payments made to contractors or for materials. These should be dated and itemized, showing the nature of the work carried out.
3. Written Log: Maintain a brief written log detailing key milestones in the development. This log should include dates and descriptions of the work completed.
4. Other Documentation: Any other relevant documentation, such as delivery receipts for materials, can also support your claim that the development commenced before the deadline.
5. Building Control Notices: Submitting building control notices before the deadline can also serve as evidence. These notices show that you have engaged with the council regarding compliance with building regulations, indicating that work has started.

The evidence needs to be proportionate to satisfy the council that works had started before 17 November if someone complains to say works did not start before this date.

Why This Matters for Investors

The Article 4 Direction is part of Salford City Council’s broader effort to manage the proliferation of small HMOs, ensuring they meet community standards and do not negatively impact local areas. By requiring planning permission, the council can better regulate the quality and suitability of these conversions, protecting both tenants and neighbours.

For investors in Swinton, Worsley, Walkden, and Little Hulton, understanding these regulations is crucial. Ensuring compliance can save time, money, and potential legal complications down the line.

FAQs from Investors

What if I’m partway through a conversion on 17 November?

Government guidance indicates that if you have started the conversion before 17 November but have not completed it, you can continue without needing to apply for planning permission. This exemption applies as long as you can provide the necessary evidence of commencement.

What areas remain unaffected to convert an HMO in Salford?

From 17 November 2024, the only parts of Salford where planning permission will not be required for the change of use of a dwellinghouse to a small HMO are the wards of Boothstown and Ellenbrook, Cadishead and Lower Irlam, and Higher Irlam and Peel Green.

How can I ensure compliance?

To ensure compliance, gather and organize your evidence now. Take dated photos, keep a detailed log, and save all bills and invoices related to the conversion. If you need further guidance, contact the Spatial Planning team at Salford City Council.

Making the Most of Your HMO in Salford

Investors looking to convert properties into HMOs in Swinton, Worsley, Walkden, and Little Hulton must act swiftly. With the 17 November deadline looming, ensuring your developments comply with the new Article 4 Direction will be essential for protecting your investment and avoiding unnecessary delays.

Given that purchasing a property with a mortgage typically takes 3 to 6 months, it is advisable to start the purchase process now to allow sufficient time to begin conversion works before the deadline. Investors may need to expedite the sale process by choosing a responsive conveyancer, preparing all necessary documentation in advance, and even considering a cash purchase to avoid delays.

Obtaining a Key Undertaking

If the purchase isn’t completed but you need to start works, obtaining a key undertaking can be a solution. This legal agreement allows you to start work on the property before completion, with strict conditions to ensure the seller’s interests are protected. This typically involves agreeing not to occupy the property, assuming full responsibility for any damages, and having insurance in place. This can be part of a purchase option agreement, which allows you to secure the property for purchase at a later date, often after completing initial works.

Conclusion for your HMO in Salford

With the deadline fast approaching, it’s vital for investors to act now to ensure their HMO in Salford development meets the requirements of Salford’s Article 4 Direction. By understanding the new regulations and preparing the necessary evidence, you can avoid the need for retrospective planning permission and ensure your properties remain compliant.

For more details on the Article 4 Direction, visit Salford City Council’s website. If you have any questions, reach out to the Spatial Planning team via email: plans.consultation@salford.gov.uk or get in touch with us at Confidence Property.

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The recent general election has resulted in a Labour government, signalling significant changes for the UK’s private rented sector (PRS). With Labour’s commitment to reviving the Renters (Reform) Bill, HMO landlords must prepare for the impending rental reform labour, especially the anticipated abolition of Section 21 evictions. As we navigate these changes, it’s crucial to understand their potential impacts and the best strategies for maintaining compliance and investment confidence.

What is the Renters (Reform) Bill?

The Renters (Reform) Bill aims to transform the rental landscape by abolishing Section 21 ‘no-fault’ evictions and introducing various tenant protections. Originally proposed to ensure fair treatment of tenants and to eliminate unjust evictions, the bill’s reintroduction under a Labour government promises significant shifts in the PRS. However, it also underscores the importance of accompanying court reforms to balance tenant protections with landlords’ rights.

Abolition of Section 21: What It Means for Landlords

Section 21 notices currently allow landlords to regain possession of their property without providing a specific reason, provided they follow the correct legal procedures. The abolition of these notices is a cornerstone of the Renters (Reform) Bill. Labour’s promise to end Section 21 ‘immediately’ raises several questions about the timing and implementation of these changes.

Immediate Challenges:

1. Increased Reliance on Section 8: Without Section 21, landlords must rely on Section 8 to evict tenants. This requires proving specific grounds, such as rent arrears or anti-social behaviour. The burden of proof and the current inefficiencies in the court system could make evictions more challenging.
2. Court System Overhaul: Effective court reform is crucial. Labour must ensure that landlords can still regain possession swiftly when necessary. Proposals include digitising court processes and prioritising cases like anti-social behaviour to streamline evictions.

Consistent Advocacy for Rental Reform

Over the past four years, there has been a consistent call for rental reform that balances the needs of both landlords and tenants. All mainstream political parties have pledged to abolish Section 21, making its abolition almost certain. The focus now shifts to ensuring that whatever replaces it works effectively for landlords and the sector as a whole.

Efforts to shape rental reform have involved using evidence provided through surveys, focus groups, and face-to-face meetings. The version of the Renters (Reform) Bill before the election, while not perfect, struck a balance between protecting renters and giving landlords the confidence to continue investing. Reviving this version of the bill is seen as the most pragmatic approach to provide much-needed regulatory certainty.

Options for Labour

To achieve Labour’s ambition to abolish Section 21 immediately, there are a few potential approaches:

1. Short Bill to Abolish Section 21: This approach could quickly end Section 21 but might lack necessary mitigations, risking landlords’ confidence in repossessing properties for legitimate reasons.
2. Starting from Scratch: A comprehensive new bill could meet Labour’s promise of immediate change but would extend uncertainty and potentially disrupt the sector further.
3. Reviving the Previous Bill: This pragmatic approach would expedite the process, implementing changes many landlords have already been preparing for and providing much-needed regulatory certainty.

Labour Rental Reform – Potential Impacts on HMO Landlords

For HMO landlords, these changes necessitate a proactive approach to compliance and tenant management. Key areas of impact include:

1. Vacant Possession: The reliance on Section 8 grounds for eviction means landlords must maintain meticulous records and ensure compliance with all legal requirements. This includes evidence of rent arrears and any breaches of tenancy agreements.
2. Court Reform: Efficient court processes are vital. Labour’s focus on court reform aims to reduce delays and improve the handling of eviction cases. This could involve digitisation and prioritisation of certain cases, benefiting landlords dealing with problematic tenants.
3. Tenant Vetting: The abolition of fixed-term tenancies may impact tenant referencing. Landlords need to be confident in the credentials of prospective tenants, making comprehensive referencing and legal expenses insurance essential.

Preparing for Future Labour Rental Reform

As Labour implements these reforms, landlords must stay informed and adaptable. At Confidence Property, we are committed to supporting HMO landlords through these transitions. Our expertise in tenancy management ensures that landlords can navigate regulatory changes smoothly, maintaining compliance and investment stability. Our approach:

• Proactive Compliance: We keep all standard documentation and templates up to date, ensuring landlords always meet the latest legal requirements.
• Efficient Tenancy Management: Our user-friendly platforms streamline tenancy setups and compliance tasks, reducing the risk of human error and legal complications.
• Expert Support: Our team provides tailored advice and support, helping landlords understand and adapt to new regulations effectively.

At Confidence Property, we are dedicated to helping you thrive amidst these changes. Fancy a chat to learn how we can help you?

Book a call with us here.

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If you’re a self-managing HMO landlord, you might have concerns about whether using an agent is the right choice for you. You may worry that an agent won’t perform well, or that the costs involved might outweigh the benefits. However, finding a good HMO letting agent can often give you peace of mind, save you time, reduce stress, ensure compliance and often boost profitability. Let’s explore the pros and cons of using an agent, why choosing a specialist HMO letting agent is crucial, and how to find the right one for your needs.

Why Consider an HMO Letting Agent?

Managing an HMO can be particularly demanding compared to managing a single let. Here’s why you might consider using an HMO letting agent:

Time and Stress Management

Managing an HMO involves regular inspections, maintenance, and dealing with tenant issues. An HMO letting agent can take on these tasks, allowing you to focus on other aspects of your life or business, reducing stress and giving you back your time.

Expertise and Compliance

HMO regulations are complex and ever-changing. A specialist HMO letting agent will have in-depth knowledge of these rules, ensuring your property remains compliant with local licensing requirements and national legislation, preventing costly fines and legal issues.

Tenant Management

Finding and retaining good tenants is crucial for maintaining steady rental income. An experienced HMO letting agent will have effective processes for vetting potential tenants, reducing the risk of problem tenants and handling disputes professionally.

Emergency Callouts – Delegated to your HMO Letting Agent

One significant pain for self-managing landlords is dealing with out-of-hours emergencies. Whether it’s a burst pipe in the middle of the night or a broken boiler in the winter, being available 24/7 for emergency call outs can be incredibly stressful and disruptive. An HMO letting agent will have systems in place to handle emergencies promptly, providing peace of mind for both you and your tenants.

High Workload Management

At times, the workload for managing an HMO can be overwhelming, and you may not have the capacity to handle everything. This can lead to void rooms, expired certificates, escalating maintenance issues, or tenants leaving. An HMO letting agent has a team of experts, each experienced and focused on delivering their objectives, ensuring that no aspect of property management is neglected.

What to Look for in an HMO Letting Agent

When selecting an HMO letting agent in Manchester, it’s important to consider specific criteria to ensure you choose the right one. Here are some key factors to look out for:

Specialisation in HMO Management

Look for agents who specialise in HMO properties and have a proven track record. This ensures they are familiar with the specific needs and challenges associated with HMOs.

Strong Local Knowledge

An HMO letting agent with extensive knowledge of the Manchester property market will be better positioned to attract suitable tenants and manage local regulations, helping in setting competitive rental prices and marketing your property effectively.

Transparent Fees and Services

Understand what you’re paying for. Look for agents who offer transparent pricing and a clear breakdown of their services, ensuring no hidden costs.

Positive Reviews and References

Check online reviews and ask for references from other landlords. Positive feedback from existing clients is a good indicator of an HMO letting agent’s reliability and performance.

Questions to Ask a Prospective HMO Letting Agent

Before hiring an HMO letting agent, ask several important questions to gauge their suitability:

• What is your experience with HMOs?
• How do you handle conflicts between tenants?
• How do you ensure compliance ALL of the time?
• What is your marketing strategy?
• How often do you review rents?
• How do you manage client money? what scheme are you a member of?
• Which property ombudsman are you a member of?
• Do you carry out photographic inventories before and after a tenancy?
• How do you manage weekly/monthly testing of fire alarms and emergency lighting?
• How often do you do communal cleans and what does the scope include?
• Do you carry out regular room inspections with a 24-point photographic checklist?
• What is your occupancy rate right now?
• How do you ask your tenants and landlords for feedback?
• What is your maintenance policy?
• Do you communicate a set of house rules throughout the tenant journey?
• Do you provide a tenant welcome pack?

The Importance of Choosing a Specialist HMO Letting Agent

Working with a specialist HMO letting agent in Manchester, like Confidence Property, offers a distinct advantage over a general letting agent:

In-depth Regulatory Knowledge

Specialist HMO letting agents are well-versed in the specific legal requirements of HMO properties, reducing the risk of non-compliance and associated penalties.

Tailored HMO Letting Agent Services

Specialist letting agents provide services tailored to the unique needs of HMO landlords, ensuring your property is managed efficiently and effectively.

Enhanced Tenant Relationships

Specialist HMO letting agents are skilled in managing the dynamics of multiple tenants, fostering positive tenant relationships, leading to longer tenancies and fewer disputes.

At Confidence Property, we pride ourselves on our comprehensive HMO management services tailored to meet the unique needs of HMO landlords. Our local expertise, transparent pricing, and dedicated tenant management systems ensure your HMO is in safe hands. With our professional approach, you can enjoy the benefits of HMO ownership without the stress and time commitment of self-management.

Are you Ready to Go Stress-Free?

If you’re ready to experience the benefits of professional HMO management, we’re here to help! Click the button below to book a discovery call. This is a friendly chat to learn more about each other and discuss how we can help you manage your HMO property more effectively.

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