I’ve come across a growing number of headlines about landlords breaking regulations, and with an increase in legislation and the number of additional licensing schemes, HMO landlords must keep up with their legal obligations.
This certainly isn’t the sexiest part of being an investor in the industry, but you need to have a strategy in place for how you will stay up to date with all of the relevant legislation and your responsibilities. If you don’t, you may face steep fines (or even jail time for the most serious cases)!
You may feel overwhelmed about this side of HMO investment. Don’t worry, that’s normal as it can be challenging to navigate. But we’re here to help! In this blog post, we’re going to share a few of our top tips on how to effectively keep up with your ever-increasing legal obligations as a HMO landlord.
1. Subscribe to HMO News
For starters, it can be helpful to subscribe to industry news outlets and relevant newsletters and podcasts. Reading the latest industry news and listening to podcasts that cover HMO investment can allow you to be aware of the ins and outs of the sector and can even help you keep up with any changes that may be afoot.
This allows you to get information directly from the experts! And these are often free to sign up for and subscribe to.
2. Become Involved in Industry Networks
Taking part in online and in-person industry groups and networks can allow you to hear insights from experienced HMO landlords.
As so much of what we can achieve with our HMO business will happen through relationships and contacts we build, surrounding yourself with the right people can also help you better understand the industry, including your legal obligations.
Look at ways you can increase your HMO networking, and it may also be helpful to find a mentor who can provide more hands-on support.
3. Reach Out to Your Local Housing Authority
Local housing authorities are usually happy to help and advise you on the specific requirements and standards you need to comply with as a HMO landlord.
To understand the legal obligations for your investment location, reach out to your local housing authority, particularly when it comes to additional licensing schemes and relevant regulations.
4. Create a Checklist
While the process of ticking boxes and gathering documents isn’t enjoyable or easy for most people, you need to accept it and do it, while making sure you don’t leave anything out.
Creating a checklist can help make sure you pull everything required together. This can also help you build the necessary systems and processes to ensure you keep up with all of your legal obligations effectively.
5. Hire a Trustworthy Managing Agent
If you don’t want to manage your HMO properties and undertake all of the compliance and legal obligations on your own, a managing agent can help keep you and your property compliant, which is a huge responsibility! But you also need to factor in the cost for this.
If you have decided to go down the route of hiring a managing agent, you need to make sure you hire a trustworthy and credible managing agent, which isn’t always easy.
6. Keep Your Knowledge and Skills Up To Date
The HMO market is dynamic and always changing, and this includes the legal side of things. Because of this, you need to continually keep your knowledge up to date in order to maintain a successful and sustainable HMO business.
While it can be boring and there are already so many different legislative policies, you need to know and keep up with these, one way or another. If you don’t, you’ll be liable, so do your research and track any potential changes.
So, there you go! I hope these tips help you start thinking about how you will continue keeping up with your legal obligations as a HMO landlord. Be proactive with this. While most people view HMO legislation as a dry topic, these are your legal obligations. And if something goes wrong, keep in mind that the buck will stop with you!
If you’d like more support and insights from experienced HMO investors on legislation, come and join us over on The HMO Community Facebook Group. And for additional resources on how to start, scale, and systemise your HMO business, including helpful information about your legal obligations, become a member of The HMO Roadmap today!
About the Author:
Andy Graham is the founder and the lead trainer at The HMO Roadmap! He is also the co-founder of The HMO Mastermind and Smart Property, a specialist HMO property investment and management company. He writes as a regular columnist in different magazines about a variety of HMO topics and is the host of The HMO Podcast! Follow Andy on Instagram!