Here at badi, we are big believers in the benefits of the humble house share. In the current climate, the concept offers major advantages, not only to those looking to take up a room but also to those who own properties themselves.
If you’ve recently purchased a buy-to-let property, you may be wondering how to set up a house share and have questions about key terminology, including what is an HMO. Well, we’re going to take some time to tackle these issues and also provide some clear advice on why you should get involved in finding the perfect house share option that’s right for you.
What are the benefits of a house share?
Ultimately, the concept offers great benefits for both landlords and the tenants who are seeking a room to rent.
Benefits for landlords
In terms of those who own a property, a house share allows them to maximise the potential of the building by opening it up to more than one tenant.
Having several people renting rooms in a property may ultimately boost a landlord’s income but it could also reduce risk in some ways too. For example, if one person misses rent or moves out, the landlord can rest assured that they will continue to receive income from the contributions of other tenants in the interim.
Advantages for tenants
Tenants can benefit from a house share in a number of ways. For instance, people living in a house share get to divide up rent and living costs, while they may also get a chance to share responsibilities when it comes to issues like cleaning.
A house share is also a chance for individuals to meet new people and potentially form lasting friendships – which means it could be a perfect way to tackle the issue of loneliness.
How to set up a house share
There are a number of aspects to consider when it comes to establishing a house share, but probably the most fundamental is the issue of understanding HMOs.
What is an HMO?
HMO simply stands for house in multiple occupation. It is a term used to describe a property rented out by at least three people from a different household who share facilities such as a kitchen or bathroom. So, in basic terms, it is the formal name for a house share.
Depending on the area your property is in, you may need a license from your local council to operate an HMO. The licences are valid for five years and are also compulsory if your property is classed as a large HMO – that is a site which is rented to five or more people.
How do I secure an HMO license?
There are conditions to holding an HMO license for each of your properties, and these include ensuring the house is suitable for the number of tenants you have. Furthermore, you will also have to provide your local council with an updated gas safety certificate annually, as well as fulfil other tasks like installing and maintaining smoke alarms.
Begin your house share journey today
So, while a house share can be rewarding for landlords and tenants alike, there is plenty to consider when setting one up. However, when it comes to finding people to take your rooms, you can rest assured that badi is here to help you every step of the way.