There are a number of things you need to do before you move anyone into one of your HMO properties. If you want to make sure you move your HMO tenants in the right way, cover your backside if there are any issues down the line, build a good rapport with your tenants from the very beginning, and ensure your existing tenants are happy with the process, then you’ll want to read this blog post!
Read about the seven things you must do before moving any new tenant into your HMO properties below or listen to the full episode on The HMO Podcast.
1. Protect Tenants’ Deposits
First of all, you need to protect tenants’ deposits and send them the deposit certificates and prescribed information, which is information generated by the deposit protection company. You must protect your tenants’ deposits within 30 days. It’s the law, and you can’t drop the ball on this!
We make sure we do this before new tenants even move into our HMO properties. In fact, we insert the deposit certificate and prescribed information into the tenancy agreement. This provides a very clear record that the tenant received these mandatory documents.
2. Set Up Tenants’ Rent Payments
You also need to set up tenants’ rent payments before they move in, whether it’s through a standing order or direct deposit. When you’re busy, it’s really easy to forget to do simple things like this, but it’s a biggie. Although, if you miss this one, you’ll probably be the only one upset by it.
So to ensure you do this, make sure that the process for rent payments is set up and that the tenant gets clear instructions on how to do this in plenty of time. I like to get payments set up weeks before tenants move in. You might not always have that luxury, but do it as early as you possibly can.
3. Send Key Property Certificates
There are a few key certificates that we must send to our new tenants before they move in. You don’t have to send all of the certificates for your HMO property, but it’s good practice to. You’ll look really professional, and it’s almost just as easy to send all of them when you have to send a few anyway.
You must give your tenants a copy of the Gas Safety Certificate, Electrical Installation and Condition Report, and Energy Performance Certificate. How you do this is totally up to you, but I recommend sending these documents digitally.
We also send a copy of the front page of the HMO licence, in addition to the Fire Detection System Certificate and Emergency Lighting Certificate. This shows that we take this really seriously, and doing this can also sometimes kill an argument before it even comes up.
4. Send Tenant Welcome Pack
A tenant welcome pack is your opportunity to communicate your brand values, introduce yourself, professionalise your service, and set expectations. It’s also a good safeguard against anything coming back at you in the future and can be a great tool to start building that relationship with your tenant.
Your tenant welcome pack can include all sorts of information. If you’re unsure what to include, become an annual member of The HMO Roadmap to have access to a downloadable template welcome pack that you can add all of your details and branding to. I’ve been using this document for several years, and it works really well.
5. Arrange Check-In Process
Ensure that you’ve planned your tenant’s check-in process and that access is given in plenty of time. Have a process to manage this, and get reminded to do it. We have a remote check-in process for our tenants, but we also sometimes send them the key. Decide what you want to do and make the process as easy and efficient as possible for your tenants.
It doesn’t look good if you’re rushing around at the last minute to get your tenant moved in. If you’re not amenable and providing access hasn’t been planned, that can add a lot of stress. Moving house is already one of the most stressful things that we do, and just because it’s a room in a shared house, it doesn’t mean that it’s any less stressful.
6. Undertake Inventories and Inspections
Doing inventories and inspections is one of my least favourite things about managing HMO properties. They’re painfully boring to do, but they’re so important. Before a tenant moves in, you need to undertake an inspection, look at the condition of the property and furniture, prepare an inventory with photographs and descriptions of everything, and check it over.
Then, you’ll need to send that inventory to your tenants before they move in. If you don’t do this, you can’t hold them to account if things are damaged or there are pieces of furniture missing when they move out. You’ll need that inventory to charge something back against their deposit.
If it’s just a room, then it’s not a huge body of work. If it’s a full property and you have five tenants moving into a new student HMO on the same tenancy agreement, there’s a lot more work involved, and you need to plan for that in advance.
However, if you have a new tenant moving into a professional HMO, then it’s probably pointless doing an inventory of the communal spaces as you won’t be able to take anything out of your tenants’ deposits for damage in those parts of the property unless a tenant actively owns up to it. But we still undertake inspections of the communal spaces and provide feedback to our tenants.
7. Tell Your Current Tenants a New Tenant Is Moving In
Finally, don’t forget to let your existing tenants know when a new tenant is moving into the property. Let them know who it is and when they should expect them. Have a system in place to communicate this with plenty of notice, and make sure you’re reminded to do it.
I’ve forgotten to do this before. It’s terrible, we look bad, and it’s an awful way for a new tenant to meet their new tenants. It’s just a really awkward environment to move into a house, so it’s best to ensure this doesn’t happen.
So, those are the seven most important things that you can do to make sure that your HMO tenant moves in happily and is ready to enjoy their new home! Some of these are required by law, while others help ensure you don’t leave yourself exposed or are just good practice. And these are all easy to do as long as you have the right systems and processes in place.
For additional resources and lessons on managing HMO properties, such as step-by-step guidance on how to protect a tenant’s deposit or a tenant welcome pack template, sign up for The HMO Roadmap annual membership!
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!